Index Agro to invest Tk14cr to increase storage
Stocks
In a way to curb its cost of purchasing raw materials, Index Agro Industries – a poultry and fish feed producer – is going to invest around Tk14 crore to expand the capacity of storing the raw materials by 16,000 tonnes.
According to its stock exchange filing on Monday, the company will install two silos – each having a capacity of 8,000 tonnes – with automatic loading and unloading facilities at the feed mill division in Bhaluka, Mymensingh.
A silo is a tall tower or pit on a farm used to store grains.
Index Agro already has five automatic storage facilities with a total capacity of 26,000 tonnes, an official of the company said on condition of anonymity.
He said if there is more storage, the company will be able to buy more raw materials in bulk when their prices are reasonable. As a result, it will improve the company's profitability.
The feed industry, like the other sectors, has not been able to escape the macroeconomic turmoil. Hence, the cost management has become crucial for the company, he added.
In the July to September quarter of 2022, the company's revenue stood at Tk113.16 crore, which was Tk98.84 crore in the same period of the previous year.
It made a net profit of Tk5.58 crore, compared to Tk7.21 a year ago.
Its earnings per share stood at Tk1.18 and net asset value per share at Tk64.11.
The company recommended a 10% cash dividend for its shareholders for FY22.
Established in 2000, Index Agro Industries Limited started operations in 2004, and got listed on stock exchanges in 2020.
It raised Tk50 crore through an initial public offering.
The company manufactures and sells poultry feed and fish feed, and produces day-old chicks.
Till November 2022, sponsors and directors held 57.77%, institutional investors 19.78%, and general investors 22.45% shares in the company.
The last trading price of its shares on the Dhaka Stock Exchange was Tk103.60 each on Monday.
Index Agro has an associate company named X Ceramics Ltd which manufactures ceramic tiles.
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