Notwithstanding sluggish sales and what is seen as a reflection of recovery, around two-thirds of listed garment companies, in July to December, reportedly, either made higher profit or managed to stay in the black.
According to media reports, of the 44 apparel companies listed with the Dhaka Stock Exchange, 14 took home more profit in the first half of the fiscal year compared to a year ago while profits of 16 entities declined, eight incurred loss and losses widened further for six firms.
Of the 14 firms that made more profit include names like Matin Spinning, Metro Spinning, Alhaj Textile, Anlima Yarn, Queen South Textile, New Line Clothing, Malek Spinning, Apex Spinning, Maksons Spinning, HR Textile and Far East Knitting, while earnings per share (EPS) of Envoy Textiles fell to Taka 0.37 in the first half of the fiscal year, from Taka 1.15 in the same period a year eve as EPS of Esquire Knit Composite decreased to Taka 1.13 from Taka 1.53 and that of Square Textiles to Taka 0.79 from Taka 0.84 while names like Shepherd Industries, Regent Textile, Evince Textile, Stylecraft, Desh Garments, Prime Textile, Nurani Dyeing and Hamid Fabrics, all fell into losses.
Speaking to the media, the Managing Director of the Esquire Knit Composite, Ehsanul Habib, reportedly, maintained that due to the COVID-19 pandemic, export orders for almost all apparel companies were affected even as the retail shops were still closed in many of Bangladesh’s export destinations and many people confined to homes.
The demand for formal clothes fell mostly, reportedly, stated Ehsanul Habib adding that clothes that are worn informally or at homes are on the rise.
