Sonali Paper posts 959% quarterly profits
The company said its sales and other income increased, and financial costs decreased in the July-September quarter
Sonali Paper and Board Mills – a concern of Younus Group of Industries – reported ten times higher or 959% year-on-year growth in profit in the first quarter of the current fiscal year although the revenue grew at 28% only.
According to financials, its net profit rose to Tk12.18 crore in the July- September quarter of fiscal 2021-22.
The earnings per share (EPS) stood at Tk6.66 while revenue rose to Tk39.73 crore.
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At the same quarter of the previous fiscal year, its net profit, EPS, and revenue were Tk1.15 crore, Tk0.63, and Tk31.03 crore, respectively.
Its principal activities are manufacturing and marketing of media, liner, simplex, duplex paperboard, and quality papers such as newsprint.
The company said, during the period, its sales and other income increased, and financial costs decreased.
As a result, its net profit and EPS increased from that of the previous year.
Earlier, in fiscal 2020-21 that ended on 30 June 2021, Sonali Paper and Board Mills had posted a 235% year-on-year growth in profit based on other income while its revenue growth was 0.42%.
In that fiscal year, the annual revenue stood at Tk141.46 crore and profit jumps to Tk8.94 crore. The profit was the highest in the last eight years.
As profit rose significantly, it had recommended the highest 40% dividends in the last decade for its shareholders; of which 20% cash and 20% stock.
Sonali Paper & Board Mills was incorporated in 1977 and got listed on the Dhaka Stock Exchange in 1985 and on the Chittagong Stock Exchange in 1996.
Under the previous management, the company had incurred huge losses and failed to provide financial statements and hold annual general meetings for years from 1998 to 2006.
Younus Group took over the company after buying all shares in 2006.
After 17 years of acquiring, the new management has applied for bringing the company back to the mainboard in 2020.
The Bangladesh Securities and Exchange Commission (BSEC) has approved the application and it was re-listed on the stock exchange in 2020.
The share trading resumed on 26 June of that year.
