In Q2 FY 2021-22, listed textile manufacturers in Bangladesh logged a staggering 152 per cent higher profits year-on-year. Analysts attribute this to higher yarn prices, unexpended stocks of cotton, higher exports and devaluation of the local currency against the dollar. Total profits of the 44 companies rose to Tk 250 crore during the quarter from Tk 99 crore in the same period of the previous year.

Exports of the garments sector rose after the pandemic with all related sectors showing growth in their profits, says Shah Alam Miah, Company Secretary, Matin Spinning Mills. In 2021 calendar year, Bangladesh imported 8.5 million bales of cotton, spending more than $3 billion. One bale equals 480 pounds or 218 kg. Around Tk 600 crore was invested in the spinning sector to set up 26 new mills last year, according to Bangladesh Textile Mills Association (BTMA).

Among the 44 textile and garment companies, 25 saw higher profits in the last quarter. Five returned to profits from loss and 14 logged lower profits, the data shows.