Matin Spinning profit jumps 134% in Jul-Mar
Its revenue also grew by 17% to Tk650.35 crore compared to the previous year at the same time
Matin Spinning Mills PLC, a sister concern of DBL Group, reported a remarkable 134% year-on-year profit surge in the first nine months of the fiscal year 2024-25, according to its quarterly disclosure filed with the Dhaka Stock Exchange (DSE) today (20 April).
Despite the strong financial performance, the company's share price fell by 2.63%, closing at Tk44.50 on the trading day.
The company's unaudited financial statement showed profit after tax reached Tk35.70 crore in the July-March period, significant up from Tk15.21 crore a year ago.
Its revenue also grew by 17% to Tk650.35 crore compared to the previous year at the same time.
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At the end of the first nine months of this fiscal year, its earnings per share stood at Tk3.66, which was Tk1.56 in the same period previous year.
The company attributed its 17% increase in sales revenue to higher average sales prices, which rose from $3.63/kg to $3.65/kg, and increased sales quantities, which grew from 13,992 tonnes to 14,851 tonnes. Additionally, a reduction in the cost of sales — from 91% to 84% — boosted the gross profit margin from 9.21% to 15.86% and turned the net profit ratio from 2.73% to 5.49%.
Meanwhile, in the January-March quarter, its revenue grew by 16% to Tk175.72 crore and the net profit surged by 7% to Tk10.25 crore compared to the same quarter of the previous year.
MA Jabbar, managing director of Matin Spinning, told TBS that the company achieved product diversification by adding value in man-made fibre and blended yarn, which helped secure strong customer orders, driving growth in both revenue and profit.
He attributed part of the success to uninterrupted power supply, which boosted productivity. "If this continues, we can fulfil even more orders."
Jabbar praised the interim government's efforts in ensuring consistent power for industries, saying it has strengthened business confidence.
He also welcomed the ban on yarn imports through land ports, stating that it would benefit local textile millers. "Earlier, low-quality yarn imports caused market disruptions, but this move will create a fairer business environment," he explained.
Regarding potential US tariffs under President Donald Trump's trade policies, Jabbar remained optimistic. "We have a strong order pipeline, and tariff impacts may be minimal. If imposed, we will negotiate pricing with buyers — but we won't compromise on profit margins," he asserted.
Earlier, to meet growing global demand for high-value yarn, the company established a dedicated special yarn unit with an investment of Tk186 crore. The unit began commercial operations in 2022. The project was financed through a mix of internal funds and approximately 70% funding from the German Investment Corporation DEG.
Matin Spinning got listed on the stock exchanges in 2014, it became highest dividend payer among the listed textile millers. In the last fiscal year, it paid a 50% cash dividend to its shareholders.
