Leading textile firms have shown perseverance in the face of economic uncertainty, labour unrest, and political turbulence by announcing year-over-year sales growth for the September quarter of the fiscal year 2024-25. The industry as a whole, however, performed inconsistently, with several mills seeing drops in revenue during that time.
“The devaluation of the local currency has had a somewhat positive impact on the textile sector, especially benefiting larger companies,” said Showkat Aziz Russell, president of the Bangladesh Textile Mills Association. According to Russell, these companies have fared better during the difficulties because of their increased production capabilities, improved operational effectiveness, and established buyer trust.
Renowned for being the first LEED-certified green denim production facility in the world, Envoy Textiles Limited reported a remarkable 134 per cent increase in net profit for the July–September period over the same time the previous year. Compared to Taka 315 crore the year before, the company’s stated revenues of Taka 440 crore represented a 40 per cent rise. Its post-tax profit increased from Taka 10.83 crore to Taka 25.33 crore. In anticipation of sustained strong demand, Managing Director Tanvir Ahmed disclosed that the mill ran at 92 per cent capacity in the first quarter and has obtained full-capacity orders for January.
By 2030, Envoy Textiles intends to build a recycling facility with the purpose of boosting the utilisation of recycled yarn in accordance with international sustainability targets. Additionally, the business has suggested a 20 per cent cash dividend for stockholders in FY ’24, up from 15 per cent in FY ’23.
Increased yarn output from its new facility in Gazipur was the primary driver of Square Textiles PLC’s noteworthy revenue gain in the September quarter. The company’s profits after tax increased to Taka 37.44 crore from Taka 35.38 crore, and its revenues reached Taka 577 crore, a 31 percent increase from Taka 441 crore in the same period previous year. For FY ’24, Square Textiles has proposed a 32 per cent cash dividend, which is higher than the 30 per cent payout from the prior fiscal year.
The DBL Group’s Matin Spinning Mills Ltd. also demonstrated encouraging results, increasing its profits by 20 per cent year over year during the September quarter. The company’s profits after tax improved to Taka 10 crore from a loss of Taka 5 crore in the same quarter last year, and its revenues increased to Taka 225 crore from Taka 188 crore. larger average sales prices, larger sales volumes, and a decline in the cost of sales were the main drivers of the gain.
A subsidiary of the Paramount Group, Paramount Textile Limited, saw a 10 per cent increase in revenue during the July–September quarter, reaching Taka 227 crore as opposed to Taka 207 crore during the same period the previous year. However, the company blamed failed export targets brought on by the ongoing global economic crisis for its decline in profit after tax, which went from Taka 25.95 crore to Taka 23.71 crore.
All things considered, these listed textile companies’ performance demonstrates their tenacity in the face of a difficult business climate, with larger companies especially reaping the benefits of increased buyer confidence and operational efficiencies.
