Envoy Textiles doing well during pandemic
The company reported around 3 percent growth in net profit in the third quarter of the current financial year
The business of Envoy Textiles Ltd, a sister concern of Envoy Group, went well in the January-March quarter despite worldwide Covid-19 pandemic pressure.
The company reported around 3 percent growth in net profit in the third quarter of the current financial year, according to an unaudited financial statement released on Thursday.
The third quarter statement reported a 2 percent decline in revenue to Tk224.30 crore.
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During this period, the net profit of the company was Tk15.19 crore, and earnings per share was Tk0.91, an increase from Tk0.88 in the same period last year.
An official at Envoy Textiles said, "We were able to retrench the cost of goods sold by 4 percent. It has been possible because of the upgraded machinery."
Meanwhile, in the first three quarters – July to March – of the current financial year, the net profit dropped by 21 percent despite an increase in the revenue by 2 percent.
In that period, the total sales of the company stood at Tk694.72 crore, net profit was Tk34.49 crore and earnings per share Tk2.06.
"In the first half of the year, our company's total power cost increased by 21.46 percent compared to that in the same period of the previous year due to an increase in gas prices," said an official of the company wishing anonymity.
"It has resulted in a decrease in our gross profit and net profit margins on sales by 1.08 percent and 1.43 percent respectively. The ever increasing input cost, power cost and the incremental rate of source tax absorbed the profit significantly."
In the last financial year, Envoy Textiles made a net profit of Tk55.44 crore, and paid 15 percent cash dividend to its shareholders.
Listed at the Dhaka Stock Exchange (DSE) in 2012, the current paid-up capital of the company is Tk167.73 crore.
Sponsors and directors together owned 45.58 percent shares of the company till February 2020. The institutional, foreign and general investors owned 41.91 percent, 0.07 percent and 12.44 percent shares, respectively.
The closing price of the company's each share was Tk21.20 on Thursday at the DSE. The company's shares hit their highest price of Tk36.10 each during last year.
