Textile share shines despite worst time of stock market

Muhammad Ayub Ali :

While industries have been facing intensified power and gas crisis, worker unrest, and economic uncertainty, most of the listed textile companies achieved year-on-year growth in the first half of the 2024-25 Fiscal year (FY)
Investors showed their interest on textile sector amid the worst situation of the share market, on 9 February, 2025, the textile sector topped the list of shares and units traded in various sectors on the Dhaka Stock Exchange (DSE).
The total transaction of the textile sector was Tk 5.71 crore, which is 16 percent of the total transactions.
A total of 58 listed textile firms in the stock market 43 have released their financial statements for the July-December period while 26 companies recorded profit growth, eight reported a profit decline, and eight incurred losses, and one posted unchanged profits.
Fifteen firms have yet to disclose their financial reports, with several of them, including Family Tex, Kattali Textile, New Line Clothings, Nurani Dyeing, and Tung Hai Knitting, currently out of operation.
Showkat Aziz Russell, president of Bangladesh Textile Mills Association said the yarn cost has increased around 40 percent compare to the last years but the some of the mills are growing profit by their hard work and diversifying their product.
Textile millers noted that the devaluation of the local currency had a somewhat positive impact on the sector, particularly benefitting larger companies. These firms, with higher production capacities, greater operational efficiency, and stronger buyer trust, were better positioned to withstand economic challenges.
Market insiders, however, pointed out that most listed textile firms remain fundamentally weak, with 22 classified under the Z category, commonly referred to as “junk stocks, due to their failure to pay dividends and, in some cases, ceasing operations altogether.
Malek Spinning emerged as the top revenue and profit earner among listed textile firms, reporting a 15 percent growth in revenue to Tk1,350 crore, while its profit surged 7 percent to Tk84.35 crore.
Syed Saiful Haque company secretor of the Malek Spinning told this correspondent that we trying do something better for the industry as well as country.
Square Textiles secured the second position with a 29 percent revenue growth to Tk1,252 crore while a 26 percent increase in profit amount to Tk75.57 crore.
Envoy Textiles ranked third, achieving a 30 percent increase in revenue to Tk899 crore and a remarkable 148 percent surge in profit to Tk60.13 crore.
Speaking to the New Nation, M Saiful Islam Chowdhury, company secretary of Envoy Textiles said that we have established our position in the global market for 15 years, we always product diversification and customer service.