Paramount Textile Limited faced a 14% year-on-year decline in net profit during the first quarter (July-September) of fiscal year 2024, attributing the decrease to unmet export targets amidst the global economic downturn.
In this period, the publicly traded company reported a net profit of Tk 23.58 crore, down from Tk 27.47 crore in the same timeframe of the previous fiscal year 2023-24.
Despite achieving the second-highest first-quarter profit in five years, following a record set in the FY23, Paramount Textile underwent substantial expansion strategies, including the implementation of a robust dyeing unit as part of their BMRE initiative.
The operational dyeing unit notably elevated the company’s production capacity by 16.50 lakh yards of fabrics per month, resulting in an added monthly revenue of $2.5 million, as confirmed by company officials.
However, the overall income took a hit in Q1 as exports didn’t meet expectations due to the global recession, expressed Paramount Textile’s Company Secretary, Robiul Islam. The company remains optimistic about augmenting exports in the remainder of the fiscal year.
Despite a noteworthy 9.47% revenue surge in Q1 FY24 compared to the same period in the previous fiscal, the production costs surged by approximately 7%, limiting the profit increment in proportion, Islam added.
Revenue derived from yarn and solid-dyed fabric segments totaled Tk 191.33 crore, up from Tk 175.1 crore in the previous year’s corresponding period. Meanwhile, the knit yarn dyeing unit’s revenue dropped to Tk 5.51 crore from Tk 10.38 crore in the same timeframe.
Paramount Textile ventured into renewable energy investments, acquiring 80% shares of Intraco Solar Power Limited (ISPL) for a 30MW solar PV power plant in November 2020. Additionally, investments were made in a 200MW heavy-speed diesel-based power plant in 2022.
The company reported an earnings per share (EPS) of Tk 1.34 for Q1 FY24, declining from Tk 1.62 for the same period last year. Paramount Textile, established in 2006, primarily focuses on woven fabrics, with over 85% of its income generated from yarn-dyed fabrics. The company holds substantial stakes in Paramount Dredging Ltd and Paramount BTrac Energy Limited (PBEL), both contributing to its operational portfolio.
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