Many of the textile manufacturers listed with the Dhaka Stock Exchange or the DSE continue to perform poorly in the stock market as business operations of most of these entities have been declining for years now consequent to lack of governance and lack of management, claimed media reports.
Speaking to the media, Honorary Professor of Dhaka University and a share market analyst, Abu Ahmed, underlined that the overall performance of the textile sector on the stock market was very poor and went on to maintain the poor performance of these entities adversely impacted the stock market and advocated the stock market regulator need to assess thoroughly overall business of a company before approving it for issuing an IPO (initial public offering).
As per DSE data, for the year 2019-20, 46 textile companies have declared their financial statements and of these only four companies have posted a profit growth compared with that in the previous year, while 24 others witnessed a decline in profits in FY20 even as 18 others have reported losses compared with that in the previous year.
Meanwhile as per reports, out of the 56 listed textile companies 16 have partially or completely shut production with names like C&A Textiles, Tung Hai, Al-Haj Textiles, RN Spinning Mills, Alltex Industries, Tallu Spinning and Ring Shine Textiles, reportedly, declaring a closure of production already.
