Matin Spinning Mills, one of Bangladesh’s leading textile manufacturers and a subsidiary of DBL Group, announced a significant increase in its third-quarter profits, driven by robust sales performance. The company reported a 7.15 per cent year-on-year rise in net profit to Taka 102 million (US $ 840,000) for the January–March period, compared to Taka 95 million (US $ 782,000) in the same quarter last year.
The company’s sales revenue reached a record high of Taka 2.04 billion (US $ 16.8 million) in Q3, marking a 16 per cent increase compared to the previous year and the highest quarterly sales in its history. This growth was supported by an increase in both sales volume and average selling prices, alongside higher export earnings, which contributed positively to the bottom line.
Cost management measures helped bolster profits, as the cost of sales, mainly raw material expenses, declined by three percentage points to 83 per cent of total revenue. However, operating expenses rose due to increased wages, and finance costs surged by 50 per cent to Taka 102 million (US $ 840,000) amid higher interest rates, as Bangladesh Bank’s monetary tightening limited money supply to curb inflation. The company’s short-term and long-term borrowings decreased slightly from Taka 5.47 billion (US $ 45.05 million) in June 2024 to Taka 5 billion (US $ 41.18 million) in March 2024.
Despite rising borrowing costs, Matin Spinning Mills demonstrated resilience with strong financial performance over the nine months ending March 2024. Revenue for this period grew 17 per cent year-on-year to Taka 6.50 billion (US $ 53.54 million), while profits surged 135 per cent to Taka 366 million (US $ 3.01 million), largely attributed to increased export earnings and higher selling prices.
As an export-oriented firm manufacturing various yarns and providing backward linkage to garment units under DBL Group, Matin Spinning Mills continues to navigate challenges posed by higher financing costs while maintaining growth momentum.
