Most listed spinning and textile mills in Bangladesh have seen a rise in Q3 profits as rising yarn prices gave a boost to apparel exports. However, business outlook for the current year remains unstable due to gas crisis, volatile cotton price in international market and a hike in global freight costs hike in the January-March quarter.
As per The Business Standard report, the Dhaka Stock Exchange lists 58 textile and spinning companies, of which 45 have published their third-quarter unaudited results. These results show, profits of 29 companies grew while seven companies saw a drop and and nine incurred losses.
The biggest gainers were: Tamijuddin Textile, Envoy Textile, Simtex, Shasha Denim, Square Textile, Monno Fabrics and Maksons Spinning. Anlima Yarn, Evince Textile and Stylecraft incurred losses, while they had recorded profits previous year. Profits of Aman Cotton, Alhaj Textile, Delta Spinners, ML Dyeing and Rahim Textile decreased in Q3 of fiscal 2021-22. The Export Promotion Bureau says, Bangladesh’s RMG exports increased 45 per cent to $11.52 billion in the third quarter through March, compared to $7.94 billion in the corresponding period of the last fiscal year. To keep pace with the growth in apparel exports, yarn makers revealed plans to invest about $2.5 billion in expanding production capacity by next year.