Square Textiles reported a 53 percent year-on-year growth in profit for the second quarter of the 2024-25 fiscal year, driven by increased yarn production.

The company posted a profit of Tk 38.13 crore in the second quarter.

Despite the strong earnings report, shares of Square Textiles declined by 0.59 percent to Tk 50.20 in mid-day trading at the Dhaka Stock Exchange yesterday.

Revenue for the second quarter rose by 26 percent year-on-year to Tk 674.32 crore, while first-half revenue for 2024-25 increased by Tk 279.15 crore to reach Tk 1,251 crore.

The company credited this growth to increased yarn production from its new project in Habiganj, ongoing balancing, modernisation, rehabilitation, and expansion initiatives at the Gazipur project and Square Texcom, along with the appreciation of the dollar.

Earnings per share for the October-December quarter climbed to Tk 1.93 from Tk 1.26 a year earlier. For the first half of the fiscal year, EPS rose to Tk 3.83 from Tk 3.05.

The expansion in yarn production led to a rise in raw material costs by Tk 190.18 crore, according to the financial statement.

Additionally, finance costs increased by Tk 29.11 crore, which the company attributed to additional financing for expansion and BMRE activities, along with higher interest rates on loans.

Meanwhile, consolidated net operating cash flow per share declined to Tk 6.58 for July-December 2024, compared to Tk 7.21 in the same period of the previous year.