• Tuesday, Nov 24, 2020
  • Last Update : 11:34 pm

Pandemic haunts Envoy Textiles

  • Published at 10:58 pm November 9th, 2020
Envoy Textiles profit 2020

Profit nosedives 76.8% between Jul-Sep

Envoy Textiles, a leading textile exporter, saw its profit crash 76.8 per cent year-on-year to Tk 2.2 crore between July and September as the global coronavirus pandemic caused a whiplash to its business.

During the quarter, sales of the LEED-certified green factory set up 2008 plunged 10.6 per cent to Tk 195.7 crore. 

Envoy Textiles placed the blame squarely on the ongoing pandemic for the downturn in its fortunes during the first quarter of its 2020-21 financial year. The company’s financial year runs from July to June.

“Not only Bangladesh, but the global economy suffered severely for the pandemic,” said Abdus Salam Murshedy, managing director of Envoy Textiles. 

The impact of the supply chain disruption was very acute, while the demand side was also vulnerable as people's income shrank across the globe, he said.

Bangladesh’s apparel export between July and September stood at $8.1 billion, up 1.3 per cent from a year earlier, according to data from the Export Promotion Bureau. But in October, garment exports were down 8 per cent year-on-year at $2.3 billion.

“Work orders by the global retailers are going through a sluggish trend,” said M Saiful Chowdhury, company secretary of Envoy Textiles, adding that the brands are lowering the prices of goods.

The other reasons for the lower sales during the quarter include a lesser number of working days for Eid holidays and cancellation of deferral of work orders. 

“Though there are worker orders from global buyers, it is not enough to run the factory. We have to bear the overhead costs and other expenses. As a result, profits came down sharply,” he added. 

Murshedy though remains upbeat. 

“Now, we have enough work orders for the current quarter and are hoping for better earnings. From November onwards, there is a possibility of returning to better production.”

However, amid the hope there is also the apprehension of a second wave, which could further disrupt the supply and demand sides, he added.

Shares of Envoy Textiles, which was listed in 2012, closed at Tk 24.6 yesterday, which is more or less the same as it started 2020.

The company announced a 5 per cent cash dividend for the 2019-20 financial year, down from the 15 per cent offered in the previous year.

blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail