Teejay’s 6-month net profit surges 75% to Rs 1.24 billion on robust Q2 growth
Top textile manufacturer Teejay Lanka PLC has witnessed impressive top and bottom line growth in the first half of 2019-20, with investments in expansion and internal measures continuing to generate anticipated improvements to net profit margins and other key performance indicators.
Noteworthy revenue and profit improvements in the second quarter of the year have enabled Sri Lanka’s only multinational textile producer to build on the strong start of the preceding quarter and report net profit of Rs 1.237 billion for the six months ending 30th September 2019, a growth of 75% over the corresponding period of the previous year.
Announcing the Company’s 8th consecutive quarter of revenue and profit growth, Teejay Lanka reported revenue of Rs 17.442 billion for the six months and Rs 9.317 billion for the second quarter, reflecting robust growth of 20% and 22% respectively.
Profit before tax at Rs 1.518 billion for the six months was up a notable 73%, and increased by 82% to Rs 935.99 million for the three months ending 30th September 2019, Teejay Lanka disclosed in a filing with the Colombo Stock Exchange (CSE).
Net profit for the second quarter grew by 84% to Rs 783.15 million, the Company said.
Teejay Lanka Chairman Mr Wing Tak Bill Lam said: “An improved product mix, internal efficiencies resulting from operational excellence initiatives and stabilisation of cotton prices can be attributed to the improvement of gross profit in the review period.”
Teejay Lanka CEO Mr Shrihan Perera said the Company maintained administration and distribution to a cost-constant framework and that the depreciation of the Rupee also contributed to keeping the rate of growth of expenses below the rate of sales growth.
Teejay Group had a carried forward net cash balance of Rs 5.39 billion at the end of the six months reviewed.
“One of the highlights of the period under review was Teejay’s venture in to a new and exciting Lace fabric business by signing a memorandum of understanding with Luen Fung Textiles. This collaboration will significantly enhance our product portfolio, and enable us to offer a versatile product range to our customers,” Mr Perera said.
Teejay Lanka was adjudged the Best Textile Exporter in Sri Lanka at the 2019 Presidential Export Awards presented by the Export Development Board (EDB), moved up three places in the Business Today Top 30 companies ranking this year and was named among the 100 Most Respected Companies in Sri Lanka by LMD.
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. Teejay Lanka PLC is a public quoted company with 39% public ownership. The company is backed by Sri Lanka’s largest apparel exporter, Brandix Lanka which has a 33% stake and Pacific Textiles of Hong Kong which owns 28% of the company.
An ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007 compliant company and the first in the industry to develop green fabric, Teejay has been listed on the Colombo Stock Exchange (CSE) since 2011 and was included in the S&P Top 20 Index in Sri Lanka. The Company has also been named among the Forbes ‘200 Best under a Billion in Asia’ and been recognised as the ‘International Textile Firm of the Year’ and the ‘International Dyer and Finisher’ by World Textile Institute, London.
