Dulamia Cotton Spinning Mills posted a catch profit within the first quarter of the fresh fiscal year 2024-25, marking its first profit in over a decade, essentially driven by an insurance coverage narrate received all the diagram thru the quarter.
No topic the milestone, the company’s production remains suspended as a consequence of outdated machinery and a continual liquidity crisis. As a result, Dulamia Cotton has no longer generated any earnings since FY20.
In accordance to the company’s unaudited monetary contrivance for the July-September quarter of FY25, Dulamia Cotton reported a catch profit of Tk15.84 lakh, a foremost turnaround from the loss of Tk19.86 lakh within the identical quarter of the old year.
On the terminate of the September quarter, the company’s earnings per fragment (EPS) stood at Tk0.21, when put next with a loss of Tk0.26 per fragment within the corresponding length of the old year.
A senior legitimate of the company told TBS that all the diagram thru the quarter, the company received Tk37 lakh as an insurance coverage narrate stemming from an incident at the factory a couple of years within the past.
“This helped the company fabricate a profit within the first quarter; alternatively, the factory remains closed,” he added.
The corporate final reported a profit in FY11 and declared a dividend for the final time in FY2009.
In accordance to market insiders, the company’s fragment be aware stood at Tk85.6 on 28 October and surged by 44%, reaching Tk123.2 by 4 December.
The corporate disclosed its quarterly monetary outcomes on 3 December on the stock change. A brokerage agency legitimate suggested that the abnormal be aware hike raises suspicions of doubtless insider trading.
Dulamia became established in 1987 and purchased listed on the DSE in 1989. Abdul Awal Mintoo is the important thing promoter of the company. It will most doubtless be an affiliate organisation of Multimode Crew led by Mintoo.
Its factory is located in Feni and it started its scramble by inserting in Romanian spinning machines.
“Dulamia Cotton is unable to upgrade its factory as it is miles a mortgage defaulter of BDBL Financial institution. As a result, the factory remains closed for bigger than a year,” senior legitimate of the company acknowledged.
In accordance to its annual yarn for FY24, BDBL Financial institution filed a case against Dulamia Cotton in 2013 to in discovering smartly a defaulted mortgage of Tk7 crore by selling the company’s sources. In response, Dulamia Cotton filed a petition to the Excessive Court docket to plot shut away its name from the Credit Knowledge Bureau (CIB) yarn, where it became listed as a mortgage defaulter.
In 2018, the Excessive Court docket directed the bank to classify Dulamia Cotton as a company in monetary afflict. The court ordered the company to pay 30% of the defaulted mortgage while instructing the bank to waive the remaining amount and plot shut foremost steps to plot shut away the company’s name from the CIB yarn maintained by the Bangladesh Financial institution.
Following the court’s decision, Dulamia Cotton agreed to pay the fervour and engaged a agency to evaluate the updates wanted to conform with the narrate.
A senior company legitimate acknowledged, “The corporate is smooth unable to in discovering to the bottom of the location as a consequence of the bank’s lack of cooperation. Alternatively, within the fervour of shareholders, discussions are ongoing with the bank to resolve the topic out of court.”
The bank has a consultant on the company’s board but would no longer maintain any fragment in it, he acknowledged.
At fresh, Dulamia Cotton is borrowing from other companies and promoters of Multimode Crew to meet its prices.
