Square Textile (F.Y. 2024-25)
Executive Summary
Square Textiles PLC, formed in 1994, and active since 1997, is one of the most successful yarn manufacturers in Bangladesh. Square mainly produces yarns that are used for the production of garments that will be exported. In this case, there was an increase in exports sales that went up by 19.67%, making up BDT 22,650.21 million. The net profit after tax increased by 17.67% making BDT 1,273.06 million. Lastly, the total assets increased by 7.49% making up BDT 24,951. The increase in total assets was 7.49%, totalling BDT 24,951.63 million. The firm offers value-added products, namely high-quality yarns. It has strong corporate governance policies and dividend policies.
Company Overview
Square Textiles PLC, formed in 1994, and active since 1997, is one of the most successful yarn manufacturers in Bangladesh. High-quality yarns produced by the company are used by the RMG industry, being mainly exported. The enterprise is a constituent member of the renowned Square group, being floated on Dhaka and Chittagong stock markets since 2002. At the moment, Square Textiles has 173,950 spindles, 5,192 rotor heads and 3,168 vortex heads of spinning capacity. Square Textiles is committed to the manufacturing of high quality organic and recycled yarns and value added yarns with sustainable and ethical business practices. The company recorded export sales of BDT 22,650 million in 2024–25 and had approximately 4,757 employees.
Industry overview
The textile industry is one of the largest industries in Bangladesh that makes contributions towards exporting goods, generating employment opportunities, and contributing to the economy. The company’s industry supports services to the readymade garment industry through processes like spinning, weaving, knitting, dyeing, and finishing. The company is focusing on quality products, operational efficiency, sustainability, and technological advancement; this all has strengthened its position in the textile industry. The company faces global economic uncertainties , rising production costs, energy challenges, and increasing raw material prices. The company also faces challenges in global and domestic markets.
Financial Performance (for the year ended 30 June, 2025)
Particulars | 2024-2025 | 2023-2024 |
Export Sales | 22,650,211,890 | 18,926,870,794 |
Cost of Goods Sold | 19,617,672,416 | 16,594,114,280 |
Gross Profit | 3,032,539,474 | 2,332,756,514 |
Administrative Expenses | 287,501,364 | 279,145,585 |
Selling & Dist. Expenses | 35,667,897 | 30,881,320 |
Operating Income | 2,709,370,213 | 2,022,729,609 |
Finance Cost | 1,279,664,335 | 706,270,357 |
Non-Operating Income | 28,756,299 | 18,462,977 |
Net profit before WPPF | 1,458,462,177 | 1,334,922,229 |
Contribution WPPF | 69,450,580 | 63,567,725 |
Net profit (Before Tax) | 1,389,011,597 | 1,271,354,504 |
Provision for Income Tax | 173,910,080 | 192,219,533 |
Provision for Deferred Tax | (57,961,648) | (2,800,677) |
Net Profit (After Tax) | 1,273,063,165 | 1,081,935,648 |
Source :- Annual Report 2025 of Square Textile.
Key Financial Ratio (Figures in ‘000)
Particulars | 2024-2025 | 2023-2024 |
Gross Profit | 3,032,539 | 2,332,757 |
Current Ratio | 1.34 | 1.23 |
Dividend (Cash) | 32% | 32% |
EPS-Earning per Share (Standalone) | 6.45 | 5.49 |
EPS-Earning per Share (Consolidated) | 7.24 | 5.89 |
Price Earnings Ratio-DSE (Time) | 7.58 | 8.42 |
Price Earnings Ratio-CSE (Time) | 7.47 | 8.34 |
Market Capitalization-DSE (in billion) | 9.65 | 9.11 |
Source :- Annual Report 2025 of Square Textile.
SWOT Analysis
Strengths 1.The company is a leading yarn manufacturer with over 30 years of industry experience. 2.Company has strong export sales growth and net profit growth in 2024-25. 3.The company is focusing on sustainable and value-added yarn products such as organic and recycled yarn. | Weaknesses 1.The company's strong dependence on imported cotton and raw material. 2.Company largely depends on the textile and RMG export market. |
Opportunities 1.The company is growing in the international market for sustainable and eco-friendly textile products. 2.Company is increasing automation and technological modernization. | Threats 1.There is rising energy and production. 2.There can be uncertainty of global economic and geopolitical conflicts. 3.The company has strong competition from India and China. |
Conclusion
Square Textiles PLC. Has a strong growth during the financial year 2024-2025. The company faces global economic uncertainties , rising production costs, energy challenges, and increasing raw material prices. The company also faces challenges in global and domestic markets. The company is focusing on quality products, operational efficiency, sustainability, and technological advancement; this all has strengthened its position in the textile industry. The company also faces challenges such as dependence on imported raw material energy costs and global market fluctuations. The company’s aim is to focus on innovation, efficiency, and sustainable growth which will support the company's profitability for long-term growth.