Far East Knitting & Dyeing Industries (FEKDI), a listed company, saw 19 per cent growth in the earnings per share (EPS) for the year ending on June 30, 2017, riding on the wave of increased sales revenue.
The company reported its EPS of Tk 2.16 for 2016-17 fiscal year as against Tk 1.82 in the 2015-16 fiscal, according to its financial statement.
During 2016-17, the FEKDI's sales revenue stood at over Tk 3.27 billion, up 4.32 per cent from the sales revenue in 2015-16.
The company's sales revenue came mainly from export earnings. In 2016-17, the company's net export sales rose to above Tk 3.25 billion, up 4.16 per cent from the export sales in the previous fiscal.
The cost of goods sold rose to above Tk 2.60 billion in 2016-17 as against over Tk 2.36 billion calculated in 2015-16.
The company's office and administrative expenses, however, decreased to Tk 242.81 million in 2016-17 from Tk 255.69 million in the previous fiscal year.
The company reported its net profit of above Tk 349.48 million for 2016-17, up 19 per cent, compared to 2015-16.
The profit margin of the company, however, declined marginally in 2016-17, compared to 2015-16.
Asif Moyeen, managing director of Far East Knitting & Dyeing Industries, said that despite marginal fall in profit margin, their company earned higher profit in 2016-17, compared to the previous fiscal year, as 70 per cent of yarn was purchased from local market.
"This year we will be able to purchase around 90 per cent of yarn locally. As a result, our incentive income will rise in 2017-18," he said.
Meanwhile, the company's board of directors decided to acquire 35 decimal lands with a four-storied building having a total of 49,851 sft. from Far East Yarn Dyeing Industries at an approximate value of Tk 135 million within one year.
This will be an important step towards increasing the company's self-reliance, said Asif Moyeen.
"Now our target for this fiscal is to exceed the export sales observed in 2016-17. We are optimistic about increased sales revenue in 2017-18, as our production capacity has already increased," he added.
The company's board of directors has recommended 15 per cent stock dividend for the year ending on June 30, 2017.
It has reported EPS of Tk 2.16, NAV per share of Tk 21.14 and NOCFPS (net operating cash flow per share) of Tk 1.07 for the year ending on June 30, 2017 as against Tk 1.82, Tk 19.43 and Tk 0.57 respectively for the same period of the previous year.
The company reported its retained earnings of above Tk 1.10 billion for the year ending on June 30, 2017 as against Tk 969.95 million calculated in previous year.
According to unaudited financial statement, the company's EPS stood at Tk 0.49 for October-December period of 2017 as against Tk 0.61 for October-December of 2016. The EPS was Tk 0.83 for July-December of 2017 as against Tk 0.86 for July-December of 2016.
The company's NOCFPS rose to Tk 0.41 for July-December of 2017 as against Tk 0.13 for July-December of 2016, while the NAV per share was Tk 19.21 as on December 31, 2017 and Tk 21.14 as on June 30, 2017.
Far East Knitting & Dyeing Industries was listed with the stock exchanges in 2014. The company's paid-up capital is above Tk 1.85 billion.
According to DSE data, sponsor-directors hold 71.05 per cent of shares in the company, while institutes hold 8.37 per cent of shares and general shareholders 20.58 per cent.
mufazzal.fe@gmail.com