Dacca Dyeing profit jumps 188% in Q2
In the second quarter of FY22, the company’s revenue grew by 109% to Tk22.94 crore compared to the previous year’s Q2
The Dacca Dyeing and Manufacturing Company – one of the oldest home textile makers in the country – reported a 188% jump in profit to Tk3.63 crore in the October-December quarter of fiscal 2021-22.
Launched in 1963, the company is currently operating under the QC Group. Its board of directors includes Gias Uddin Quader Chowdhury, Samir Quader Chowdhury, Samiha Quader Chowdhury, and Sajia Quader Chowdhury.
All of them are relatives of former Bangladesh Nationalist Party (BNP) leader Salahuddin Quader Chowdhury who was executed for crimes against humanity committed during the 1971 Liberation War.
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In the second quarter of FY22, the company's revenue grew by 109% to Tk22.94 crore compared to the previous year's Q2.
At the end of the first half of FY22, its revenue stood at Tk42.20 crore, profit Tk6.34 crore, and earnings per share Tk0.73.
Investors are expecting a good return from the company as its share price has risen six and a half times in the last year to Tk23.30 per share at the Dhaka Stock Exchange (DSE).
The shares had earlier plummeted to Tk3 each as the textile manufacturer suffered losses consecutively from the 2015-16 to 2018-19 fiscal years mainly because its factory went out of production after a power crisis, and the disconnection of its gas lines.
In addition, it defaulted on its loans taken from Sonali Bank and Agrani Bank which hampered its exports significantly.
However, it has turned around from this situation, thanks to the efforts by the Bangladesh Securities and Exchange Commission (BSEC) and the directors of the company.
The Dacca Dyeing officials declined to comment on this issue but several BSEC officials said the present commission, immediately after taking charge, held a meeting with the directors of the company.
In the meeting, the company was advised to appeal to the High Court to get the gas connections restored. It was also asked to organise the annual general meetings, which were halted since 2016.
Besides, the company regularised its defaulted loans through rescheduling. It also took working capital from the government's stimulus package. At present, the company's factory is operating in full swing.
The company declared a 2% cash dividend for its shareholders for FY21.
