Envoy Textiles’ net profit rose more than four times to Tk 17.46 crore between October and December, compared to the same period a year ago, as global retailers placed more orders with the company. Demand from buyers grew thanks to a stable business environment that prevailed in the first quarter, Abdus Salam Murshedy, managing director of Envoy, said yesterday. “We want to maintain such growth in the second quarter as well.” Envoy will set up a new spinning unit which is expected to start production in June 2016, he said. The company is putting in Tk 235 crore to set up the spinning unit in Bhaluka of Mymensingh, to become a full-fledged textile manufacturer. The unit will produce 17,500 tonnes of yarn a year, which is 30 percent higher than the company’s own demand, Murshedy said. Envoy, a leading denim maker in Bangladesh, currently uses 24,000 tonnes of yarn a year to make fabric, and it intends to sell the spinning unit’s residual output. The new unit will create around 400 jobs. Envoy makes 48 million yards of fabrics annually, and is a supplier of readymade garments to Wal-Mart, H&M, JC Penney, GAP, Carrefour, Zara and Next. The company’s earnings per share stood at 1.21 in the first quarter, according to the Dhaka Stock Exchange website. Envoy shares traded between Tk 54.9 to 59, closing at Tk 55.7 on the Dhaka bourse yesterday. On December 10, Envoy entered an agreement to sell cloth to Prosperity Textile, a denim manufacturer in Guangdong province of China, according to DSE. The Chinese textile maker will also share technical know-how with Envoy, especially for product development, it said. Envoy’s net profit fell 28.61 percent year-on-year to Tk 31.09 crore during the year ended September 2014. However, the company recorded a year-on-year turnover growth of 10.23 percent, to Tk 439 crore.
