Teejay Lanka posts 5th successive quarter of growth

Revenue in Q3 2018-19 alone increased by 28 per cent to Rs 8.48 billion, profit before tax grew by 7 per cent to Rs 628.8 million and net profit improved by 12 per cent to Rs 550.9 million over Q3 of the preceding year. The margin for Q3 had improved to 12.3 per cent as against 11.2 per cent on a quarter-on-quarter basis as a result of better loading and an improved mix via the Group’s US and EU business units, said Teejay Lanka chairman Bill Lam in a press release.

Group gross profit for the nine months was up 18 per cent to Rs 2.6 billion, operating profit improved by 19 per cent to Rs 1.6 billion and profit before tax at Rs 1.48 billion reflected growth of 11 per cent, according to the company’s filing with the Colombo Stock Exchange (CSE).

Additionally, improved capacity utilisation across the Group, mainly with Teejay India’s expanded capacity exceeding expectations with optimum production and capacity utilisation, had contributed to the performance. The depreciating Rupee and cost reduction initiatives also helped to keep overhead cost increases below revenue growth, Lam explained.

He disclosed that the Teejay Group had a carried forward net cash balance of Rs 4.6 billion at the end of the quarter reviewed and a strong order book for the final quarter of 2018-19, projecting strong numbers for the Group.

“While we continue to see growth opportunities for Teejay Group, we also see challenges, foremost among them sale mix and raw material price volatility and increases in utility costs. Despite the challenging market conditions, the Group is optimistic that with a strong order book, capacity optimisation and the depreciation of the Rupee it will end the financial year on a strong footing,” said Lam.

A weft knit fabric specialist with manufacturing operations in Sri Lanka and India, Teejay is one of the region’s largest textile manufacturers, and supplies fabric to some of the best international brands across the world. (PC)

ALCHEMPro News Desk – India