Rahim Textile sees robust profit growth of 96% in Jul-Dec

Rahim Textile Mills, a concern of New Asia Group, witnessed robust profit growth of 96% in the first half of the current fiscal year.

From July to December 2024, its net profit after tax increased to Tk46.76 lakh, up from Tk23.46 lakh in the same time of the previous fiscal year.

Its earnings per share (EPS) jumped to Tk0.49 in the second quarter.

Regarding the significant jump in profit, in a stock exchange filing on Wednesday, the textile miller said, "Its profit has significantly increased due to a decrease in the cost of goods sold and operating expenses."

The net operating cash flow per share (NOCFPS) of the company stood at Tk11.81 in the first half due to an increase of collection against receivables and a decrease of payment to creditors; in the previous year, its net operating cash flow was negative at Tk9.32.

Meanwhile, in the second quarter, from October to December, its profit jumped by 115% to Tk26.39 lakh. At the same time as the previous year, its net profit was Tk12.15 lakh.

In the 2023-24 fiscal year, Rahim Textile Mills made a profit of Tk97 lakh and paid a 10% cash dividend to its shareholders.

Before that, in the 2022-23 fiscal year, it had witnessed a blow as it incurred a loss of Tk12.47 crore, and owing to the substantial losses, it did not pay any dividend for its shareholders for FY23.

On Wednesday, its share price closed at Tk115.90 each at the Dhaka Stock Exchange (DSE).