Paramount Textile now investing in renewable energy

PARAMOUNT TEXTILES FINANCIALS

• Net profit was Tk65.87 crore in FY19-20
• EPS rose by 46.71% from the previous year
• PTL to invest Tk18.48 crore in Intraco Solar Power
• It will sign an agreement to buy 80% shares of Intraco Solar Power

Paramount Textile Limited (PTL), which is listed with the capital market and a sister concern of Paramount Group, is now diversifying its portfolio to the power sector.

The company produces and delivers woven fabrics since its inception in 2006, and more than 85% of its total income comes from yarn-dyed fabrics.

Although Paramount Textile started its business in the textile sector, now it is stepping into the renewable energy sector.

PTL has decided to invest in a 30MW (AC) grid-tied solar PV power plant in Intraco Solar Power Limited (ISPL).

The company will sign an agreement to purchase 80% shares of ISPL owned by Intraco CNG Ltd.

Paramount Textile will purchase 29% ownership – 4350,000 shares of ISPL – from the portion of Intraco CNG Ltd for Tk18.48 crore.

The board of directors of the company made the investment decision at a meeting on 15 November.

Earlier, the company invested in a 200MW heavy-speed diesel-based power plant at Baghabari in Sirajganj.

PTL owns 49% of the Paramount BTrac Energy Limited (PBEL) which came into operation in June 2019.

It has also stepped into dredging work by setting up a subsidiary named Paramount Dredging Ltd. It owns 65% shares of this company.

Sources in PTL said the tenure of the solar plant is 20 years, which means the company got a fixed income opportunity from the plant.

In the last fiscal year, the company's net profit increased to about Tk37 crore from the 200MW power plant.

The company expects that its profit will increase next year from the solar plant.

Md Robiul Islam, company secretary of Paramount Textile, said, "Decision on investing in renewable energy has been made to diversify product portfolios. Day by day, the business is getting competitive; so the management decided to invest in this sector.

"We are doing well in the textile business. Because of Covid-19, everyone in this sector has suffered but we have not been affected much. Now, we have brought antibacterial products in the market."  

Despite the adverse impact of the pandemic in March, the company's earnings per share (EPS) increased by 46.71% compared to that of the previous year.

In fiscal 2019-20, the company posted a Tk65.87-crore profit and the EPS stood at Tk4.46. In the previous fiscal year, PTL profit was Tk41.15 crore and EPS was Tk3.04.

The company declared a 15% cash dividend only for general shareholders and a 5% stock dividend for all shareholders.