Mozaffar Hossain Spinning sees jump in profits

Profits of Mozaffar Hossain Spinning Mills rose to Tk 9.79 crore in the July-December period of the ongoing fiscal year (FY) while it had incurred losses of Tk 3.93 crore in the same period in FY2020-21, according to data from the Dhaka Stock Exchange (DSE).

The spinning company's earnings per share stood at Tk 0.73 in the second quarter (October-December) of FY2021-22, up from Tk 0.03 in the same period a year ago.

It's net asset value per share was Tk 19.13 as of December 31 while it was Tk 18.16 six months ago.

"The effect of production and sales from the new ring spinning unit and full capacity utilisation at the rotor unit as well as the current price hike of yarn helped the company make positive changes in all indicators," the company said in a disclosure posted on the DSE website yesterday.

However, its share price eroded 2.22 per cent to Tk 30.80. "We set up a ring spinning unit at a cost of around Tk 250 crore and production started from last January," said Haris Alam, company secretary of Mozaffar Hossain Spinning Mills.

About 50 per cent of the rotor unit's capacity was closed for construction work that began last April, he said. "What is more, we got extra mileage with the higher price of yarn as we had a good stock of it so we got a good price on cotton," he added.

A week ago, the widely consumed 30-carded yarn was selling for $3.60 to $3.75 per kilogramme (kg) whereas it was $2.60 to $2.80 per kg two months ago, according to knitwear manufacturers and suppliers.