Paramount Textile's revenue falls 15%, profit rises on higher other income

Paramount Textile, a listed company on the bourses, reported a year-on-year revenue decline of more than 15% in the first nine months of the current fiscal year, according to its consolidated quarterly financial statements.

Despite a nosedive in revenue, the company posted a slight increase in profit to Tk96.81 crore, compared with Tk96.41 crore in the same period last fiscal year. However, earnings per share (EPS) slightly dipped to Tk5.14 from Tk5.22.

The company said its operating profit fell 14% amid the revenue contraction. Still, higher income from other sources and gains from associate companies helped offset the decline, enabling Paramount Textile to register a modest profit growth during the July–March period.

Its report showed that its profit from associates companies surged 250% to Tk36 crore while its other income jumped by 631% to Tk10.81 crore.

It has investment in associates' companies—Paramount BTrac Energy Ltd, a 200 MW HSD power plant and Dynamic sun energy Pvt Ltd, a joint venture company between Paramount Textile Ltd and Global energy project holdings (GEPH). 

According to its financial report, in the third quarter during the January to March, its revenue fell by 30% to Tk245.71 crore, a lower from Tk354.01 crore in the same time of the previous fiscal year. 

Despite 25% declining in its operating profit, net profit surged 6% to Tk52.65 crore mainly due to increase in share of profit of associates companies. 

In the three months, it earned Tk15.79 crore from its associates. 

In FY25, Parmount Textile made a profit of Tk116.06 crore with an EPS of TK6.48. It had paid a 12% cash dividend for its shareholders. 

Paramount Textile's shares closed at Tk61.60 each today (4 May) at the Dhaka Stock Exchange (DSE), a 2.38% down from the previous trading session.