Maksons Group’s two listed cos see staller profit growth in Q1
Metro Spinning Mills and Maksons Spinning, two concerns of Maksons Group, witnessed stellar growth in the July-September quarter of the fiscal 2021-22, thanks to the higher price of yarn.
At the end of the first quarter, Metro Spinning's earnings per share jumped 700% to Tk0.40 and the Maksons Spinning Mills earnings per share grew 582% to Tk0.75.
A senior officer of this group said despite the higher price of raw material in the international market, the two companies achieved the growth as the yarn manufacturers bought the cotton earlier when the price was low. They sold the finished goods at a higher price.
Keep updated, follow The Business Standard's Google news channel
According to the Export Promotion Bureau, apparel shipments grew by 41.66% in September this year compared to the same month last year.
The highest earnings, $1.90 billion, came from knitwear shipment, while woven items fetched $1.51 billion, both posting over 41% growth from a year-ago period.
Meanwhile, after April this year, Metro Spinning's share price jumped 355% to Tk35 till September. At the end of the Monday trading session, its share price closed at Tk26.90 at the Dhaka Stock Exchange. Besides, Maksons share price also grew 441% to Tk34.60 in the same period and it closed at Tk31.90 on Monday.
Maksons declared a 11% cash dividend for the shareholders for the fiscal year 2020-21 and Metro Spinning recommended a 5% stock dividend.
This year, Metro Spinning decided to invest Tk200 crore for the reconstruction and expansion of its factory and installation of new machinery in order to cater to the growing demand of apparel abroad.
The company has set a target of Tk300 crore revenue income from the expansion project.
The existing production capacity of the company is 26.29 lakh kgs. After the completion of the expansion project, it will reach 91.25 lakh kgs.
On 7 December, Maksons Group announced it will invest around Tk1,000 crore in three new spinning units in the Mirsarai Economic Zone. It inked a deal with the Bangladesh Economic Zones Authority in this regard.
Metro Spinning will invest Tk340 crore while Maksons Spinning will invest Tk254 crore and Tk348 crore in two separate units.
