Queen South Textile Mills – a dye manufacturer for the sweater industry – will establish a new fibre dyeing unit with a daily production capacity of 5-tons, at a cost of Tk4.2 crore.
The decision came at the company's board of directors meeting on Tuesday.
Queen South Textile Mills runs its business as a 100% export-oriented backward linkage textile industry.
The company produces different types of knitted, dyed and finished cotton, nylon, polyester, Viscose, carded, combed and acrylic yarn, as a single business segment.
According to information obtained from the company, once complete, the product line will push company revenue up to around Tk4.5 crore per month with expected profits of Tk4.5 lakh.
On 24 August this year, the company said it has installed two gas generators of 1500 KW each at a cost of Tk6.88cr, which will help raise its after-tax profitability by Tk4.56 crore a year.
Queen South Textile Mills listed on the stock exchange in 2018.
In fiscal year 2019-20, amid the pandemic, its revenues went down 27% and profit 41%, compared to the previous year. Its revenue was Tk307.25 crore and profit Tk11.62 crore in FY20, which was Tk419.86 crore and Tk19.88 crore respectively in FY19.
Despite the drop in revenues and profit, the company paid an 8% cash and 8% stock dividend to shareholders for last year.
In the first nine months of FY21, its revenues stood at Tk262.94 crore and profit, Tk11.58 crore.