Simtex Industries to set up spinning unit

FE Online Report | Published: September 19, 2018 11:30:54 | Updated: September 21, 2018 11:55:20

The board of directors of Simtex Industries Limited has decided to set up a spinning unit of 26,000 spindles to produce high quality spun polyester Sewing Thread.

The project cost will be around Tk 1.80 billion, said a disclosure posted on the Dhaka Stock Exchange (DSE) website on Wednesday.

According to the disclosure, the estimated production capacity of the unit will be 15 MT per day of Raw Sewing Thread which would cover 75 per cent of existing raw material requirement of the company.

Each share of the company, which was listed on the Dhaka Stock Exchange (DSE) in 2015, closed at Tk 45.90 on Tuesday at DSE.

In nine months for July 2017-March 2018, its earnings per share (EPS) Tk 1.54 as against Tk 1.56 for July 2016-March 2017.

The net operating cash flow per share (NOCFPS) was Tk 1.83 for July 2017-March 2018 as against Tk 3.34 for July 2016-March 2017.

The net asset value (NAV) per share was Tk 22.92 as on March 31, 2018 and Tk 23.73 as on June 30, 2017.

The company said that cash payment for financial expenses has been considered as financing activities which was previously considered as operating activities and comparative amount has been re-arranged accordingly in the statement of cash flows.

The company’s paid-up capital is Tk 659.18 million and authorised capital is Tk 1.0 billion, while the total number of securities is 65.91 million.

The sponsor-directors own 34.30 per cent stake in the company, institutional investors 15.80 per cent and the general public 49.90 per cent as on August 31, 2018, the DSE data shows.

The Credit Rating Information and Services Limited (CRISL) has rated the Company as “A” in the long term and “ST-3” in the short term along with a stable outlook in consideration of its audited financials up to June 30, 2017, unaudited financials up to March 31, 2018 and other relevant quantitative as well as qualitative information up to the date of rating declaration.

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