Regent Textile Losses Jump Fourfold

Company Performance

Regent Textile Losses Jump Fourfold

Regent Textile Mills witnessed a staggering 424% increase in its losses in the fiscal year that ended on 30 June 2021, despite a 29% turnover growth. In the last fiscal year, the loss of the company stood at Tk 20.80 crore, which was Tk 3.97 crore a year ago. Its turnover stood at Tk 110.87 crore, which was Tk 86.12 crore in the previous fiscal year. Most companies posted impressive profits in FY21, thanks to an increase in global demand. In the July to October period this year, readymade garments exports increased by 21% to US$ 12,621.15 million. Regent Textile deals in woven fabrics, dyeing, printing, sewing, finishing, and packaging procedures. It completes the process line from weaving to finishing of readymade garments fabrics and home furnishing items. In 2015, the Bangladesh Securities and Exchange Commission approved the company's initial public offering (IPO) of Tk 125 crore with a premium. But, it is alleged that the company did not utilise the IPO fund properly. In October last year, Regent Textile decided to acquire a 99% stake in the 100% export-oriented Legacy Fashion Limited. Regent acquired the company for Tk 63.01 crore and it announced an additional investment of Tk 80 crore in the RMG sector. Till 31 October 2021, the sponsors and directors jointly held 54.55%, institutions 6.11%, and the general public 39.34% shares of the company.