Al-Haj Textile Mills Limited reported a sharp turnaround in its financial performance in FY24, posting a record profit and announcing its highest-ever dividend, driven largely by a one-off accounting gain linked to the resolution of a long-running legal dispute with Agrani Bank, the company said.
The textile maker posted a net profit of Tk22.45 crore for FY24, compared with a loss a year earlier, after recognising Tk43.95 crore received from Agrani Bank as income. Earnings per share rose to Tk10.07 from a loss of Tk0.78 in FY23.
The company’s net asset value per share jumped 119% to Tk18.52, reflecting the accounting adjustment. However, operating performance remained weak, with net operating cash flow per share negative at Tk2.58, underscoring continued pressure on cash generation.
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The scale of the turnaround was notable as Al-Haj Textile had reported a net loss of Tk7.56 crore for the nine months ended March 31, 2024, indicating most of the profit was booked in the final quarter following changes in accounting treatment related to a disputed fixed deposit receipt with Agrani Bank.
The company said its board approved recognising the amount as income based on the auditor’s opinion. The sum had previously been shown as a liability due to ongoing legal proceedings.
Al-Haj Textile had been engaged in a prolonged legal dispute with Agrani Bank over recovery of the funds. Although the Supreme Court vacated the case in the company’s favour in November 2021, the bank later filed a default loan case, prompting the company to continue treating the funds as a liability.
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The company said legal advisers later confirmed that proceedings were stayed by court order, making any interest charged during the period illegal.
Following a review after the stay order was vacated, the company recognised the amount as income in FY24.
The board declared a record dividend of 5% cash and 35% stock for the year, subject to regulatory approval. No dividend was declared in FY23.
Shares of Al-Haj Textile closed 2.12% lower at Tk143.10 on Monday, valuing the company at about Tk319 crore.
