Paramount Textile's profit slides 14% in September quarter

Publicly listed Paramount Textile Limited, a sister concern of the Paramount Group, reported a 14% year-on-year decline in profit in the July to September quarter of the ongoing fiscal year.

During the quarter, the company's consolidated net profit stood at Tk23.59 crore, resulting in a Tk1.34 earnings per share.

In its stock exchange filing, Paramount Textile blamed the global economic crisis for its profit decline as the company could not reach its expected export target.

Also, its net operating cash flow per share decreased because of poor cash management strategies like making early payments to the suppliers, the disclosure reads.

The company's consolidated revenue, however, increased by 9.41% year-on-year to Tk226.61 crore in the first quarter of the fiscal 2023-24.

Of the amount, Tk191.33 crore came from yarn & solid dyed fabric, Tk5.51 crore from knit yarn dyeing, Tk4.54 crore from printing, and Tk25.22 crore from the supply of electricity.

At the end of September this year, the company's net asset value per share stood at Tk37.55.

Established in 2006, Paramount Textile makes yarn-dyed fabrics, the sale of which makes 85% of its total income. But now, the company is entering the renewable energy sector.

In the fiscal 2022-23, its revenue was Tk946.38 crore, and after-tax net profit Tk136 crore. The company recommended a 10% cash dividend for FY23.

As of 31 October 2023, sponsors and directors jointly held 60.95% shares of the company, institutions 10.07%, foreign investors 4.38%, and general investors 24.60%.

Paramount Textile's shares are stuck at the floor price of Tk77 each at the Dhaka Stock Exchange.