Queen South Textile installs generators expecting Tk4.56cr jump in profit

Queen South Textile Mills, a 100% export-oriented backward linkage products manufacturer of the textile industry, has completed installing two gas generators with an investment of Tk6.88 crore.

As a result of setting up the generators, Queen South Textile expects to save approximately Tk38 lakh monthly and increase its profit by Tk4.56 crore yearly, revealed the company on the stock exchanges' websites on Tuesday. 

Earlier, on 6 June this year, the company said it has completed setting up an automated warehouse measuring 7,410 square feet. With the new warehouse, the company's storage capacity will increase by 2,400 metric tonnes and reach 4,000 metric tonnes.

Queen South Textile Mills was established in 2003 and started operation in mid-2005 with a daily capacity of dyeing 25 metric tonne yarn per day. Subsequently, it increased its capacity to 50 metric tonne yarn per day.

Queen South Textile Mills is located in the Dhaka Export Processing Zone. It is engaged in dyeing cotton, polyester, viscose, acrylic, nylon and blended yarn to market the processed yarn as a deemed exporter.

It was listed on the stock exchanges in 2018.

In the last fiscal year, the company made a profit of Tk11.62 crore, which is 42% lower than the profit of Tk19.88cr in the previous year. At the same time, its revenue decreased by 26% to Tk307.25 crore from Tk419.86 crore.

The company paid 8% cash and 8% stock dividends excluding sponsors and directors.