Envoy Textile declares 5% interim cash dividend

Highlights:

• 47% revenue loss in 4th quarter of FY2019-20
• Incurred Tk7.15 crore loss
• Net profit dropped 76.8% to Tk2.2 crore in FY21
• Sales plunged by 10.6% to Tk195.7 crore
• Share price rose 4.58% to Tk25.7 per share on Tuesday

Envoy Textiles Ltd, the world's first LEED-certified green denim manufacturing facility, which has been hit hard by the pandemic, on Tuesday declared a 5% interim cash dividend for its shareholders for the 2020-21 financial year.

The company set 8 December as the record date for the interim dividend.

Earlier in October this year, Envoy Textiles recommended a 5% cash dividend for the 2019-20 financial year, which was the lowest dividend since it was listed on the Dhaka Stock Exchange (DSE).

Company Secretary M Saiful Islam Chowdhury said that Envoy Textiles had decided to pay the interim cash dividend considering the interests of general shareholders.

The company, also one of the largest denim manufacturers in the country, has posted a 47% loss in revenue in the fourth quarter of the last fiscal year.

Due to the novel coronavirus pandemic, the company incurred a loss of Tk7.15 crore for the first time since it was listed on the country's premier bourse.

Following the pandemic, its net profit also nosedived by 76.8% to Tk2.2 crore in the first quarter of the current financial year.

During that quarter, sales of the green factory set up in 2008 plunged by 10.6% to Tk195.7 crore. 

Kutubuddin Ahmed, chairman of Envoy Textiles Ltd, said, "In the new fiscal year, we saw a lot of inquiries from brands, but order placement was not like that due to the pandemic situation.

"The textile manufacturer has nominations from some big brands but most of the buyers are concerned about the second wave of the pandemic. That is why brands are not placing orders as they did in the pre-pandemic period."

Kutubuddin said that the brands are now trying to develop some products as per their inquiries, and are looking for the availability of vaccines in the market before placing fresh orders.

"If the second wave largely affects the European Union and the US, the apparel industry's recovery might be delayed," he added.

Bangladesh's apparel export between July and September stood at $8.1 billion, up 1.3% from a year earlier, according to data from the Export Promotion Bureau.

But in October, garment exports were down 8% year-on-year, reaching $2.3 billion.

Share price of Envoy Textiles, which was listed in 2012, increased 4.58% to Tk25.70 per share on Tuesday at DSE.

The company's paid-up capital is Tk167 crore.

As of October 31, 2020, the sponsor-directors own 45.58%, institutional investors 43.45%, foreign investors 0.07% and general public 10.90% of shares of the company, the DSE data shows.