Company profile

Far East Knitting sees steady growth in last five years

Mohammad Mufazzal | Published: June 24, 2018 10:07:20 | Updated: June 24, 2018 17:42:44


Far East Knitting & Dyeing Industries (FEKDI) exhibited a steady growth in sales revenue and net profit during last five financial years (FY) from 2012-13 to 2016-17.

The company's earnings per share (EPS), however, declined for January-March, 2018 quarter compared to same period of the previous year.

The company reported its revenue worth above Tk 3.27 billion for 2016-17 against the revenue worth above Tk 3.13 billion in 2015-16.

The revenue was above Tk 2.76 billion in 2014-15, above Tk 2.67 billion in 2013-14 and above Tk 2.31 billion in 2012-13.

The price pressure that the industry faced in the wake of UK triggering the Brexit process and unsettled European economy was much more expected in FY 2016-17, Asif Moyeen, managing director of the FEKDI, explained in the annual financial statement.

"Nevertheless, a healthy profit of above Tk 349.48 million was recorded in 2016-17," he said, adding that the company continued to be in a very healthy financial position.

"We will continue to put all our efforts to ensure that it continues and also to ensure a steady growth in sales and profit to provide a solid shareholder value," Moyeen added.

The cost of goods sold rose to above Tk 2.60 billion in 2016-17 as against over Tk 2.36 billion in 2015-16.

The company's office and administrative expenses, however, decreased to Tk 242.81 million in 2016-17 from Tk 255.69 million in the previous FY.

The company's return on assets (ROA) gradually rose from 4.92 in 2013-14 to 8.01 in 2016-17, reflecting the management efficiency.

The company's net profit was above Tk 231.65 million in 2012-13, above Tk 241.87 million in 2013-14, above Tk 314.66 million in 2014-15, above Tk 294.01 million in 2015-16 and above Tk 349.48 million in 2016-17.

The EPS was Tk 2.54 in 2012-13, Tk 2.23 in 2013-14, Tk 2.38 in 2014-15, Tk 1.82 in 2015-16 and Tk 2.16 in 2016-17.

The company's EPS declined moderately to Tk 0.14 in January-March, 2018 quarter compared to Tk 0.39 of same period of the previous year.

The company officials said they were optimistic about increased sales revenue in 2017-18, as the production capacity already increased.

The company disbursed 15 per cent stock and 5.0 per cent cash dividend for 2013-14, 10 per cent stock and 5.0 per cent cash dividend for 2014-15, 10 per cent stock and 5.0 per cent cash dividend for 2015-16 and 15 per cent stock dividend for 2016-17.

The FEKDI, an 'A' category company, was listed with the stock exchanges in 2014. The company's paid-up capital is above Tk 1.85 billion.

The sponsor-directors hold 71.05 per cent shares in the company, while institutions hold 8.61 per cent and general shareholders 20.34 per cent as of May 31, 2018.

The company's share trading closed at Tk 15.30 each on Thursday on Dhaka Stock Exchange (DSE).

mufazzal.fe@gmail.com

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