Paramount Textile to add solar power as new revenue stream

Paramount Textile is going to diversify into solar power generation, expecting nearly Tk 3.07 billion in revenue from solar plants over 20 years from FY28.

The fabric producer, one of the most profitable textile companies among those listed, made the disclosure on Sunday.

The new possible revenue stream is more than 25 per cent of revenue in FY25. The company earned Tk 12.26 billion in revenue and secured Tk 1.21 billion in net profit, with a 9.90 per cent profit margin.

According to the disclosure, Paramount Textile and Paramount Holdings were jointly awarded the project to develop four solar plants at different locations across the country, with a combined capacity of 295 megawatts.

The company also informed that the joint venture partners had received the Notification of Award (NOA) from the Bangladesh Power Development Board (BPDB), issued under the Public Procurement Rules 2008.

The Power Purchase Contract (PPC) will be executed within 28 days from the date of the NOA, and the project implementation period is two years from the date of the PPC.

Company Secretary Md Robiul Islam told The FE, "If everything remains according to plan, we will be able to earn additional revenue from the second half of FY28."

"We are yet to calculate how much profit the solar projects will bring to our company," he added.

The estimated cost of the plants is $268.00 million, and expected yearly revenue is Tk 5,139.82 million. The financing structure will be 70 per cent debt and 30 per cent equity.

Paramount Textile's contribution will be equivalent to 176 MW out of the total 295 megawatts.

Meanwhile, following the disclosure, the share price of Paramount Textile slid 0.59 per cent to Tk 50.90 on Sunday on the Dhaka Stock Exchange (DSE).

Paramount manufactures a diversified range of yarn and solid-dyed woven fabrics. It is one of the most stable textile manufacturers in the country and has provided consistent dividends to investors.

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