Sonali Aansh profit rises on diversified products' high prices

Sonali Aansh Industries – a publicly listed exporter of jute goods – has reported a 60% year-on-year growth in profit in the first half of the current fiscal year, riding on an increase in the prices of its diversified products.

According to a Dhaka Stock Exchange (DSE) filing, its earnings per share (EPS) increased to Tk2.03, which was Tk1.27 at the same period of the previous year.

And its net profit stood at Tk1.10 crore.

In the second quarter of the fiscal 2022-23, the EPS jumped by 36% to Tk1.13 from Tk0.83 a year ago.

The disclosure did not provide a clear explanation on its profit growth.

Its Director Jafar Ahmed Patwary and Company Secretary Md Habibur Rahman Khan could not be reached on their phones for comments.  

According to its latest annual report, increased prices for more value-added diversified jute products that include jute-made shoes, bags, and accessories have been helping the company offset the low profitability of the jute yarns it produces.

The disclosure also reports that its net operating cash flow per share has increased significantly in the first half of the fiscal 2022-23.

The company recommended 100% stock dividends for their shareholders for the fiscal 2021-22 to comply with the regulatory requirement. Currently, its paid-up capital stands at Tk5.42 crore.

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 28 February 2023, sponsors and directors jointly held 50.78%, institutions 5.63%, and the general public 43.59% of the company's shares.

The last trading price of its shares was Tk427.70 each at the DSE on Thursday.

Bangladesh exports 282 types of jute products to around 135 countries, according to the Export Promotion Bureau.

From July to February of the current fiscal year, the country's jute and jute goods exports decreased by 23.68% to $610.08 million, compared to the same period in FY22.