73

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Current Dyed Yarn Production Capacity and Projection 

by the company  

Actual

Projected

Particulars

Current

FY’18

FY’19

FY’20

Production Capacity/day (MT)

42 

57

57

57

Capacity Utilization/day (MT)

31.08 

44.8

47.3

48.3

Utilization (%)

74.0% 

78.6%

83.0%

84.7%

Source: Company Prospectus 

Principal Suppliers of Raw Material  

Supplier Name

Country of 

Origin

Gain Plus Agents Limited

Hongkong

Queensin Limited

Hongkong

Kingpro Trading Limited

Hongkong

Viet  Cotton  Yarn  Investment Trading Jsc

Vietnam

T and T Iindustries Ltd.

Taiwan

Kohinoor Spinning Mills Ltd.

Pakistan

Duy Nam Spinning Jsc.

Vietnam

Bhalchandram Clothing Limited

 India

Le Merite Exports Pvt. Ltd.

India

Lahoti Overseas Limited

India

Jiangsu  Guo  Tai  International Group Guo Mao Co. Ltd.

Chaina

Huntsman (Singapore) Pte. Ltd.

Singapore

Source: Company Prospectus

Lock-In Provisions  

Particulars

No. of Shares

Duration of Lock-in

Lock-In Expiry*

7.5% shares allocated to general public

7,501,235

No Lock-In

N/A

53.2% shares allocated to Sponsors

53,314,000

3 Years

December 10, 2020

25% of the 7.5% shares allocated to EI

1,875,300

6 months

June 10, 2018

other 25% of the 7.5% shares allocated to EI

1,875,300

9 months

September 10, 2018

31.8% shares allocated to shareholders other than sponsors, directors and EI

31,837,685

1 Year

December 10, 2018

*Lock-In Duration is counted from the Issue Date of Prospectus

Queen South Textile Mills Limited operates its 

business as a backward linkage industry. QSTML 

sells its products through L/Cs to the 100% export 

oriented sweater manufacturers who consume 

the dyed yarn as raw material for production of 

readymade sweater to export abroad. Therefore, 

the final destination of the company’s products is 

overseas market. 

Principal Products and Services

Queen South Textile Mills  Limited  operates  its  business  as  a  
backward  linkage  industry. QSTML  sells  its  products  through  
L/Cs  to  the  100%  export  oriented  sweater manufacturers 
who consume the dyed yarn as raw material for production 
of readymade sweater to export abroad. Therefore, the final 
destination of the company’s products is overseas market. 
Queen South Textile Mills Limited ultimately produces yarn for 
renowned sweater manufacturers which are later on consumed 
by the world-famous brand. Queen South Textile Mills Limited 
has ample scope for diversification and the company has aimed 
to serve other industries also, who requires dyed yarn for other 
textiles goods.  

Capacity

Queen South Textile Mills Limited has been using state of the 
art machineries and technologies in order to dye of (acrylic, 
nylon, cotton, viscose) yarn. Its manufacturing process is 
heavily technology driven, dynamic in nature with cutting edge 
technology. QSTML currently produces 31.08 MT and has 
a capacity of producing 42 MT dyed yarn per day. Factory of 
the company is located on a 10,166.67 sq. meters area at Dhaka 
Export Processing Zone, Savar, Dhaka, Bangladesh. 

Financial Overview

 The company posted 10.3% Gross Margin, 7.5% Operating 

Margin and 4.1% Net Margin in its latest H1FY18 
statements. Gross and Net Margin grew by 4.0% and 
9.6% respectively from H1FY17.

 Company’s Gross, Operating and Net Profit increased by 

14.6% and 21.7% respectively in H1FY18 from H1FY17. 
Operating and Net Profit were much larger than the Gross 
Profit as the company has managed to reduce its operating 
expenses.