Business Desk :
ML Dyeing Limited, a listed yarn dyeing company of Far Group, has started partial operation of its new spinning plant at Gazipur.
Currently, the company is engaged in the dyeing business of yarns for export-oriented sweater manufacturers.
On 30 June, ML Dyeing inaugurated its production formally. The production capacity of the new unit will be 20 tonnes of denim yarn per day.
Initially, the company will use 50% capacity of the unit. The new denim unit was built at a cost of Tk62.58 crore. The estimated annual turnover of the unit will be Tk80 core per year and will add a net profit of Tk13 crore.
Mohammad Humayun Kobir, head of marketing at ML Dyeing, said, “The demand for yarn has greatly increased in the last few months. We cannot meet the demand of buyers. So, the management has a plan to expand the spinning business in the future.”
ML Dyeing entered the stock market in 2018. It was the third company of Far Group to be listed on the stock market. The other two companies are RN Spinning and Far Chemical Industries.
The net profit of the company increased 2% in fiscal 2019-20 amid the coronavirus pandemic shocks.
Its annual revenue declined 3% to stand at Tk238 crore in the last fiscal year, compared to the previous year. In FY20, the company dyed 1.8 crore pounds of yarns.
It disbursed 5% cash and 5% stock dividends to the shareholders for the last fiscal.
In the first nine months of fiscal 2020-21, the company’s earnings per share (EPS) decreased by 32% to Tk0.79, compared to the same period of the previous year.
ML Dyeing’s share price stood at Tk29.10 at the end of Wednesday’s trading session at the Dhaka Stock Exchange.
As of May this year, sponsors and directors hold 31.40%, institutional investors 22.34%, foreign investors 21.89%, and general investors 24.37% shares of the company.
