Malek Spinning profit grows 7% in H1
Malek Spinning’s consolidated net operating cash flow per share stood at Tk4.85 for July-December, compared to Tk6.46 for the same period in 2023
Highlights
- Half-yearly profit: Tk84.35cr
- EPS: Tk4.35
- Oct-Dec profit: Tk50.87cr
- Profit grows 21%
Malek Spinning Mills – a concern of New Asia Group – has reported a consolidated 7% year-on-year growth in the first half of the fiscal 2024-25, driven by higher sales, according to a stock exchange filing yesterday.
The deemed exporter posted a profit of Tk84.35 crore, resulting in earnings per share (EPS) of Tk4.35, compared to Tk78.65 crore and an EPS of Tk 4.06 during the same period a year ago.
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As an immediate effect, Malek Spinning Mills shares jumped 9.66%, hitting the highest limit for a single day, to Tk26.10 each at the Dhaka Stock Exchange (DSE).
In an explanation regarding the EPS increase, the company said that between July and December 2024, sales volume significantly increased compared to the same period a year ago, resulting in increased gross profit and net profit.
The extent of the sales boost in the first half is yet to be known, as the company has not published its quarterly financials on its website.
Malek Spinning's consolidated net operating cash flow per share stood at Tk4.85 for July-December, compared to Tk6.46 for the same period in 2023.
Meanwhile, its consolidated net asset value per share increased to Tk57.57 as of 31 December, from Tk53.74 as of 30 June 2024.
The company said the decrease in cash flow was due to increased payments for raw materials and other expenses, as well as increased financial expenses. The increase in retained earnings led to the increase in asset value.
Profit Jumps 21% in Oct-Dec
Malek Spinning Mills posted a 21% growth in the second quarter of the current fiscal year.
During the October to December period, its net profit increased to Tk50.87 crore, from Tk41.92 crore during the same period of the previous fiscal year.
The EPS during the period stood at Tk 2.62.
Malek Spinning Mills PLC is one of the largest spinning mills in Bangladesh, with nearly 64,000 spindles.
The company began its commercial operations in January 1991 and was subsequently converted into a public limited company in September 2008.
It is a deemed exporter, and 100% of its yarn is supplied to local knit garment manufacturers, who then export these garments to world-renowned apparel retailers.
It has three subsidiaries: Salek Textile Limited, Newasia Synthetics, and JM Fabrics Limited. JM Fabrics contributed significant revenue to its total revenue.
