Staff Reporter :
Out of 58 textile companies listed on the country’s stock market, only five surpassed the Tk1,000 crore revenue milestone in the 2023-24 fiscal year. These firms are Malek Spinning, Square Textile, Envoy Textile, Paramount Textile, and Shasha Denims.
Notably, Paramount Textile and Shasha Denims achieved this feat for the first time in their history.
Malek Spinning reached this milestone in FY18 based on consolidated earnings, while Square Textile and Envoy Textile followed in FY21 and FY22, respectively.
However, Esquire Knit Composite, which crossed Tk1,000 crore in revenue in FY22, saw its earnings fall below Tk800 crore in subsequent years.
Market analysts noted that most listed textile firms are fundamentally weak, with 21 categorised as “Z category” or junk stocks due to their failure to pay dividends and, in some cases, halting operations.
A brokerage firm managing director observed that only a few listed textile companies benefit from effective management and robust corporate governance, enabling them to achieve steady growth even during challenging economic periods.
In contrast, most firms lack good corporate practices, having gained market listing with assistance from the securities regulator despite insufficient qualifications.
Shasha Denims
Shasha Denims achieved a consolidated export growth of 30.21 per cent in FY24, as per its annual report. Chairman Parveen Mahmud credited this milestone, which pushed revenues past Tk1,000 crore, to the support of subsidiary companies.
Managing Director Shams Mahmud highlighted the company’s resilience despite global and domestic economic challenges. Shasha Denims’ shares closed at Tk17.60 on Thursday, 1.12 per cent lower than the previous session, with a 10 per cent cash dividend paid to shareholders in FY24.
At Shasha Denims, our team focuses on developing a perfect balance between fashion and sustainability through treatment and fabric.
Shasha Denims Ltd began its journey as a family owned company, with a vision to create a global standard in green and sustainable denim manufacturing industry.
We have now positioned ourselves as one of the leading 100% export based denim manufacturers in Bangladesh, while we continuously develop and refine environmentally friendly techniques and procedures with a more-than-human consideration creating our denim products.
Without compromising quality, we have eliminated many harmful practices to develop high quality denim fabric that become a staple in world class denim wear.
Paramount Textile
Paramount Textile’s Managing Director, Shakhawat Hossain, acknowledged the significant economic challenges faced in FY24, including global uncertainties, inflationary pressures, energy shortages, and rising costs of oil, gas, and transportation.
Despite these hurdles, the company achieved reasonable progress.
Paramount Textile shares closed at Tk46.80 on Thursday, and it paid a 5 per cent cash and 10 per cent stock dividend to shareholders for the fiscal year.
Square Textile
Square Textile Chairman Tapan Chowdhury remarked that while the RMG sector maintained its position as the top export earner, challenges arose from increased raw material and machinery costs compared to marginal growth in product prices overseas.
Square Textile shares closed at Tk50 on Thursday, 0.60 per cent lower than the previous session, with a 32 per cent cash dividend declared for FY24.
Envoy Textile
Envoy Textile reported a 28.54 per cent revenue growth in FY24, primarily driven by a 25 per cent rise in global demand for denim fabrics, as per Managing Director Tanveer Ahmed.
Envoy Textile shares closed at Tk39 on Thursday, 2.20 per cent lower than the previous session, with a 20 per cent cash dividend paid to shareholders.
Despite the sector’s challenges, these five companies have demonstrated resilience and growth, distinguishing themselves in a volatile economic environment.
