Square Textile PLC, one of Bangladesh’s leading yarn manufacturers, has announced plans to invest Tk40 crore under its Balancing, Modernisation, Rehabilitation, and Expansion (BMRE) programme to enhance production capacity and efficiency.
Alongside this expansion, the company’s board has approved the merger of its subsidiary, Square Texcom Limited, as part of a strategic move to consolidate operations and strengthen competitiveness within the textile industry.
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Square Texcom, located in Kathali, Valuka of Mymensingh, is a major contributor to the group’s textile operations. The parent company currently holds a 99.88% equity stake, representing an investment of Tk48.93 crore.
According to the company’s latest financial disclosures, Square Texcom delivered an impressive performance in FY25, with revenue rising 28% to Tk197.89 crore and net profit increasing 8% to Tk7.99 crore. The subsidiary produces various yarn types, including cotton, polyester, synthetic, wool, and blended varieties, catering to diverse textile market demands.
The board of Square Textile has also recommended a 32% cash dividend for the fiscal year 2024-25, reflecting the company’s strong financial foundation. To finalize the dividend approval, the Annual General Meeting (AGM) will be held on 15 December, with the record date set for 16 November.
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During FY25, the company reported a 23% rise in consolidated earnings per share (EPS) to Tk7.24, while its net asset value (NAV) per share stood at Tk55.86, highlighting robust profitability and asset strength.
Despite the positive financial outlook, Square Textile’s share price on the Dhaka Stock Exchange (DSE) declined slightly by 1.29%, closing at Tk53.70 on 21 October.
Industry analysts note that the merger and new investment signal Square Textile’s commitment to operational efficiency, technological advancement, and long-term growth in Bangladesh’s expanding textile sector.