Spinning companies listed at Dhaka Stock Exchange (DSE) logged higher profits in the July-March period of the current year from that of a year ago thanks to a price hike of yarn.

As per Daily Star, between July and March of the current fiscal year, Bangladesh earned $23.48 billion from apparel shipments, which was 2.55 per cent lower than that in the corresponding period last fiscal year, according to data from the Export Promotion Bureau.

While textile and RMG were struggling, spinning mills availed the advantage of the price hike of yarn which turned out to be a big influencer of their higher profits.

Among six listed spinners, four witnessed higher profits and two were able to make a profit on incurring losses previously.

Malek Spinning logged the highest profit growth among all the 26 listed textile companies. Its profit rose more than eight times year-on-year to Tk 39 crore in the first nine months of the current fiscal year.

Cotton was being traded at $0.60 to $0.85 per kg on an average during the June-December period last year, which later on ranged between $0.95 and $1.7 in March, according to data of Bangladesh Textiles Mills Association (BTMA).

The spinning mills attributed the hike in cotton prices to rising demand for the item globally and its supply crunch, and upward costs of other related logistics following the emergence of the pandemic.

Due to the pandemic, cotton price rose in the world market which enhanced yarn prices. It ultimately had an impact on the local yarn market, said Mir Ariful Islam, Head-Research, Prime Finance Asset Management Company.