Lower exports shrink Sonali Aansh's profit by 83% in March quarter

Sonali Aansh Industries Ltd – a publicly listed exporter of jute products – has reported an 83% year-on-year profit decline in the January to March quarter of the ongoing 2022-23 fiscal year owing to a decrease in the company's exports.

During the period, the company's net profit stood at Tk16 lakh, which was Tk97 lakh in the same quarter previous fiscal. Its earnings per share (EPS) stood at Tk0.3.

The company's net operating cash flow per share stood at Tk12.51 and net asset value per share at Tk115.61 at the end of March 2023.

According to a senior official of the company, Sonali Aansh could not export enough of its products because of a decrease in global demand.

Because of the global crisis, the number of buyers for its products has fallen. Now, the company is working towards manufacturing more diversified products, said the official.

Sonali Aansh, which is the first ISO certified jute product manufacturer in the country, has been facing low prices against high costs of its products in the international market.

Increased prices for more value-added diversified jute products, that include jute-made shoes, bags, and accessories, have helped the company offset the low profitability from its jute yarns, according to its latest annual report.

In FY22, the company recommended a 100% stock dividend for its shareholders in order to comply with the regulatory requirement.

The firm has increased its paid-up capital to Tk5.42 crore from Tk2.71 crore by issuing bonus shares.

Sonali Aansh Industries Limited was incorporated in 1981 and started production in 1982. It was listed on the Dhaka Stock Exchange (DSE) in 1985.

As of 30 April 2023, sponsors and directors jointly held 50.78%, institutions 5.63%, and the general public 43.59% shares in the company.

The last trading price of its shares was Tk439.20 each at the DSE on Tuesday.