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Sonali Aansh Industries has reported more than 36 per cent year-on-year growth in earnings to Tk 3.07 million for October-December (Q2), FY23, despite a marginal decline in sales compared to the same quarter a year ago.
A manufacturer of jute yarn and diversified jute products, it saw its profit jump because of an increase in the prices of finished goods, the company said in a disclosure posted on the website of the Dhaka Stock Exchange (DSE).
Cost of goods sold fell 23 per cent year-on-year in the second quarter of FY23. Administrative and marketing costs remained almost the same during the period.
The financial expenses declined 6 per cent in Q2, FY23 to Tk 12.97 million from the same quarter of the previous fiscal year.
The earnings per share (EPS) stood at Tk 1.13 for Q2, FY23, up from Tk 0.83 for Q2, FY22.
The EPS was Tk 2.03 for the six months through December 2022, increased from Tk 1.27 for July-December 2021.
Sonali Aansh saw a steep growth in EPS for FY22, compared to the previous fiscal year. It reported an EPS of Tk 3.92 for the FY22, having grown at 247 per cent from the previous fiscal year.
It issued 10 per cent cash dividends for FY17, FY18, FY19, FY20, and FY21 each.
Sonali Aansh Industries saw a sharp rise in the operating cash flow as well for July-December, FY23 from the same period of the year before.
The net operating cash flow per share (NOCFPS) rose to Tk. 53.37 for July-December 2022 from just Tk 7.90 for July-December 2021.
NOCFPS increased due to an increase in cash receipts from customers, according to the disclosure.
The company issued 100 per cent stock dividend for FY22 in order to increase its paid-up capital to comply with the regulatory requirement.
Before issuing the stock dividend, the company said it would be issued from accumulated profit/retained earnings and that after the dividend declaration, company's retained earnings shall remain positive.
Its existing paid-up capital is Tk 54.24 million whereas the reserve and surplus is Tk 565.70 million.
The company exports jute yarn & fabric and diversified jute products to different countries, including Turkey, Egypt, Spain, France, Germany, and Italy.
Preferring anonymity, a company official said the company's export of jute yarn had recently declined, marginally but the business remains profitable for sales of finished products.
Sonali Aansh Industries, presently an 'A' category company, was listed on the stock exchange in 1985.
Its sponsor-directors hold 50.78 per cent shares, institutes 5.63 per cent and general investors 43.59 per cent, according to data at the end of January 2023.
The stock jumped to Tk 904.80 from Tk 603.8 in a matter of two weeks to October 19 last year.
Later, it endured huge price erosion and fell to Tk 434 on December 8. It finally closed at Tk 427.70 on Thursday.
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