Evince Textiles shares surge by 10% Tk14.62cr investment announcement
According to the disclosure, the textile firm will purchase a set of continuous denim dyeing sizing machines and a high-speed warping machine with standard accessories, originating from Taiwan
Evince Textiles Limited, a publicly listed firm, has decided to invest Tk14.62 crore in purchasing capital machinery to expand its denim fabric production, according to a disclosure published on the stock exchange's website.
Following the investment disclosure, Evince Textiles' share price hit the upper limit with a 10% gain to Tk11 each on the Dhaka Stock Exchange (DSE) today.
According to the disclosure, the textile firm will purchase a set of continuous denim dyeing sizing machines and a high-speed warping machine with standard accessories, originating from Taiwan.
The total cost, including freight charges, amounts to $1.2 million. Calculated at an exchange rate of Tk121.86 per US dollar on 30 August, this is equivalent to Tk14.62 crore, the disclosure read.
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According to its unaudited financials, the company in the first nine months of the 2024-25 fiscal year reported a 17% decline in revenue to Tk249 crore and incurred a loss of Tk2.15 crore, with a loss per share of Tk0.12.
The firm attributed this production loss of about 25.30% in its Q3 report to several factors, including the scarcity of gas supply, political turmoil, worker unrest affecting the garment industry (its customers), and a banking crisis.
In the last FY24, it witnessed a significant jump in revenue with around 44% gain to Tk407 crore.
With the significant jumps in revenue, its net profit soared by 661% to Tk10 crore with an earnings per share (EPS) of Tk0.58.
It had paid 2.5% cash dividend to its shareholders, and its shares are trading under the B category.
Evince Textile got listed on the stock exchange in 2016, and its paid-up capital is Tk18.37 crore divided by 18.37 crore shares.
The principal activities of the company is to manufacture 100% cotton yarn dyed woven fabrics.
As of 31 July, out of its total shares, sponsor-directors held 32.94% stake, while institutional investors 13.90%, and general investors held 53.16% stake in the company.
