ML Dyeing Limited – a sister concern of Far Group, will invest Tk62.58 crore building up a factory in Gazipur to start its spinning business.
At present, ML Dyeing is engaged in the dyeing business of yarns for export-oriented sweater companies.
AKM Atiqur Rahman, company secretary of ML Dyeing, said “We have already imported machinery for the new plant. Despite the countrywide lockdown, we hope that the new plant will start operations in May this year.”
However, the new plant’s production capacity will be 16,500 kg yarn per day. The annual turnover of this plant will be Tk78 crore and net profit Tk12 crore.
It was the third company of Far Group to be listed in the stock market. The other two companies are RN Spinning and Far Chemical Industries. ML Dyeing entered the stock market in 2018.
The last trading price of the Far company’s shares was Tk3.8 each as of 12th April (Monday). The net profit of the company increased by 2 per cent in the 2019-20 fiscal year amid the pandemic.
But its annual revenue declined by 3 per cent to Tk238 crore for the last fiscal year, compared to the previous year. In FY20, the company dyed 1.8 crore pounds of yarns.
It distributed 5 per cent cash and 5 per cent stock dividends to the shareholders for the last fiscal.
The company’s earnings per share (EPS) decreased by 36 per cent to Tk0.57 in the first six months of the current fiscal year, compared to the corresponding period of the previous year.
Out of total shares of the company, sponsors and directors hold 31.40 per cent, institutional investors 22.55 per cent, foreign investors 21.89 per cent and general investors have 24.16 per cent as of February this year.
ML Dyeing’s share price prevailed at Tk50 for a long time due to the floor price mechanism which was withdrawn last week.
Its share price declined by 13 per cent to Tk43.3 each in the last two days at the DSE as the company got rid of the floor price.