Matin Spinning Mills' profit dips

Matin Spinning Mills PLC, a concern of DBL Group, said its net profit after tax plunged 59 percent in the financial year ending in June 2023 despite the company registering increased revenue.

The spinning mill saw its revenue grow by 22 percent year-on-year to Tk 734 crore in the July-June period of financial year 2022-23 as production of special yarn began at its new unit.

Yet, its earnings dipped to Tk 42.7 crore for the financial year ending in 2023, down from Tk 105 crore the same period a year ago.

Earnings per share of the company declined accordingly.

The concern of DBL Group, one of the largest apparel exporters, said its earnings fell mainly because of a 22 percent spike in the cost of goods sold, resulting from a significant increase in raw material cost, power and fuel cost, finance cost as well as other costs.

At the same time, the sales price of yarn decreased 12 percent per kilogramme during the financial year, said Matin Spinning, a listed company with the stock market, in a price sensitive disclosure.

"Our utility cost has soared. Besides, our repayment cost for foreign loans shot up because of the depreciation of the taka against the US dollar," said Md. Shah Alam Miah, company secretary of Matin Spinning Mills, one of the largest spinning mills in the country.

The board of Matin Spinning declared a 40 percent cash dividend for the financial year ending in June 2023.

Shares of the spinner closed unchanged at the Dhaka Stock Exchange yesterday.