Textured Jersey records Rs 1.3b net profit

Textured Jersey Lanka PLC (TJL) recorded its highest ever annual net profit of Rs.1.3 billion for the year ended March 31, 2015, an increase of 16% year-on-year. This was achieved on the back of a Rs. 512 million net profit for the quarter ended March 31, 2015, a 46% year-on-year increase.

According to Chairman, Textured Jersey, Bill Lam, the strong quarterly performance enabled the company to conclude the year with a record profit despite the slowdown in sales experienced in the early part of the year, attributed to unusual and extreme weather in the United States.

TJL reported Rs.3.8 billion in sales for 4Q FY2014-15, up 16% year-on-year. As per the statement released, this was mainly due to demand from its main customers being back on track.

Lam said that improved demand coupled with recently added capacity enabled TJL to optimise capacity utilisation and product mix to achieve gross profit margins of 15% for 4Q FY 2014-15 compared to 12% during the corresponding quarter of last year.

This allowed the company to increase its gross profit by 45% to Rs. 583 million for 4Q FY2014-15 and drive its annual gross profit to Rs.1.6 billion, up 11% compared to the year before.

The statement further said that the strong performance at gross profit level allowed TJL to post an operating profit of approximately Rs. 476 million for 4Q FY 2014-15, recording a 52% year-on-year growth at the operating profit level. TJL's annual operating profit for the year ended March 31, 2015 was Rs.1.2 billion, 14% higher year-on-year.

Lam said that TJL continued to maintain its near debt-free balance sheet as at March 31, 2015, with a net cash position of Rs. 1.9 billion.

The Chairman said that the lower interest rates, combined with a marginally lower cash position compared to a year before led to net finance income dropping to Rs.14 million for 4Q FY2014-15. The net finance income for the year ended March 31, 2015 was Rs. 58 million, down 36% compared to the year before.

Lam said that despite the reduction in finance income, the quarter concluded with a net profit of Rs. 512 million growing 46% year-on-year. The combined effect of added capacity and strong demand recovery in the latter part of the financial year, coupled with solid cost and productivity management enabled TJL to report a record annual net profit of Rs. 1.3 billion for FY2014-15 despite challenges.