Textile mills’ profit skyrockets in Q2
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard

Friday
August 19, 2022

Sign In
Subscribe
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
FRIDAY, AUGUST 19, 2022
Textile mills’ profit skyrockets in Q2

Industry

Jasim Uddin & Ahsan Habib Tuhin
29 January, 2022, 10:25 pm
Last modified: 30 January, 2022, 06:09 pm

Related News

  • Most listed textile cos post profit in Q3
  • 2 Alif Group concerns post higher profits in Q1, FY22
  • Eastern Housing’s profit jumped but not dividend
  • Gas crunch halves RMG production, job loss fear among workers
  • National Housing Finance’s profit rises 36%

Textile mills’ profit skyrockets in Q2

Surge in yarn prices was the key reason, industry insiders say

Jasim Uddin & Ahsan Habib Tuhin
29 January, 2022, 10:25 pm
Last modified: 30 January, 2022, 06:09 pm

The country's spinning and textile millers witnessed a jump in profit in the second quarter (October-December) of fiscal year 2021-22, despite a gas crisis and subsequent production losses in the period.

They posted up to 2,357% year-on-year growth in the quarter, according to an analysis on the financial statements of the 58 listed textile companies.

Mozaffar Hossain Spinning, Envoy Textile, Maksons Spinning and Metro Spinning were some of the top gainers.

Industry insiders said they could bag more profit with higher production if there was no shortage in gas supply.

"We lost $1.75 billion production opportunities due to the gas crisis," Mohammad Ali Khokon, president of the Bangladesh Textile Mills Association, told a press conference at a capital hotel yesterday.

In the event, he also expressed concern over the proposed gas price hike and said such a hike would increase their production costs and reduce competitiveness.

"As a result, investment flow would be badly impacted," he added.

The financial situation of the textile millers can also be interpreted by the trend of apparel shipments as the millers are the main backward linkage industry of readymade garments. 

According to the Export Promotion Bureau, the RMG exports increased by 46.21% to $10.84 billion in the second quarter of FY2021-22, while it was $7.42 billion in the corresponding period of the last fiscal (FY2020-21).

To keep pace with apparel export growth, yarn makers planned to invest about $2.5 billion to boost production capacity by the next year.

Talking to The Business Standard, Shams Mahmud, managing director of Shasha Denim, said the spinning millers were enjoying high growth in profits due mainly to the surge in yarn prices.

Echoing Mahmud, several other insiders said cotton prices rose 35% in the global market over the last couple of months, which was why they raised the yarn prices.

However, increased freight rates and feeder vessel shortage put them in different challenges, they added. 

Economy / Top News

Textile mills / Profit Increase

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • The curious case of RMG import growth overtaking export’s
    The curious case of RMG import growth overtaking export’s
  • Japanese ambassador seeks equal incentives for foreign cos at EPZs
    Japanese ambassador seeks equal incentives for foreign cos at EPZs
  • Countries heavily reliant on imported grain are already facing acute food insecurity. Photo: Reuters.
    No major food shortage in Bangladesh: World Bank

MOST VIEWED

  • BM Depot fire: Uncertainty grips RMG exporters over payment for burnt goods
    BM Depot fire: Uncertainty grips RMG exporters over payment for burnt goods
  • Photo: Mohammad Minhaj Uddin/TBS
    High diesel cost, but scanty fish catches push fishing industry to the brink
  • Photo: Courtesy
    Norway-based Jotun Group opens its first factory in Bangladesh
  • Larger-scale first industrial printing park construction gets go-ahead
    Larger-scale first industrial printing park construction gets go-ahead
  • Photo: TBS
    Nitol-Niloy, Kinematics invest Tk140cr to produce insulators in Chhatak
  • Load shedding, costly fuel bite into poultry
    Load shedding, costly fuel bite into poultry

Related News

  • Most listed textile cos post profit in Q3
  • 2 Alif Group concerns post higher profits in Q1, FY22
  • Eastern Housing’s profit jumped but not dividend
  • Gas crunch halves RMG production, job loss fear among workers
  • National Housing Finance’s profit rises 36%

Features

We will be facing massive, recurring challenges in the coming years no matter what. Photo: Reuters

Holes in the recession story

15h | Panorama
Illustration: Bloomberg

What nonmonogamy can teach moonlighters and job jugglers

14h | Pursuit
The members of BracU Dichari in Poland for the ERL Championship Round. Photo: Courtesy

BracU Dichari: A Bangladeshi robotics team on the world stage

16h | Pursuit
FundedNext aims to provide funds to traders with the best possible trading experience and to maximise the opportunity to unleash their true potential. Photo: Noor-A-Alam

FundedNext: A global prop-trading firm built by a Bangladeshi youth

16h | Panorama

More Videos from TBS

Love, marriage, trolls, and an unusual death

Love, marriage, trolls, and an unusual death

5h | Videos
Are elephants on the verge of extinction in Bangladesh?

Are elephants on the verge of extinction in Bangladesh?

6h | Videos
BM Depot fire: Uncertainty grips RMG exporters over payment for burnt goods

BM Depot fire: Uncertainty grips RMG exporters over payment for burnt goods

8h | Videos
Eight more banks make unusual gains from forex dealings

Eight more banks make unusual gains from forex dealings

9h | Videos

Most Read

1
From left Afzal Karim, Murshedul Kabir and Mohammad Jahangir
Banking

Sonali, Agrani and Rupali banks get new MDs

2
Russia now offers Bangladesh finished oil
Energy

Russia now offers Bangladesh finished oil

3
Photo: TBS
Bangladesh

5 crushed to death as BRT girder falls on car in Uttara

4
Photo: Collected
Economy

Bangladesh is not in a crisis situation: IMF

5
Dollar price drops by Tk8 in kerb market
Economy

Dollar price drops by Tk8 in kerb market

6
Eight more banks make unusual gains from forex dealings
Banking

Eight more banks make unusual gains from forex dealings

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2022
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]