Net profit of Envoy Textiles rose 139.8 percent year-on-year to Tk 51.45 crore during October-June.
Higher utilisation led to volume growth, and year-on-year margin improvements drove the stellar performance of the company, said Brac-EPL Stock Brokerage, a security analyst.
Referring to the textile company’s half yearly statements, Brac-EPL said scale benefits from utilisation of the added capacity was the main driver of such a strong performance.
“Top line grew by 47.8 percent in the first half, despite a 5.5 percent fall in cotton prices over the same period in the international market — which directly impacts the selling price,” it said.
The expansion project came into operation in the second quarter that increased capacity by 35 percent to 5 crore yards a year from 3.7 crore yards, but operations began in full swing from the third quarter, it added.
Listed in 2012, each share of the company traded between Tk 51 and Tk 48.2, before closing at Tk 49.2 on the Dhaka bourse yesterday.
