Hayleys MGT-Knitting Mills shows positive turnaround
Hayleys MGT-Knitting recorded a profit after tax of Rs. 90 million
(US $ 680,000) for the financial year ending March 31, 2015, delivering
a profit growth of 149% and a top line growth of 6% year-on-year.
FY 2014-15 marked the first year of the company recording a surplus
after consecutive losses during the recent past. The company also
generated a cash profit of Rs 412 million (US $ 3.1 million) in the year
under review.
The changes made in the top management continued to show results by
attracting business to fill capacity and though improved performance on
quality and on-time delivery. Cost reduction measures, productivity
improvements, system and process improvements were some of the main
contributory factors for the better performance.
The positive results shown from the first quarter of 2014 gave
confidence to institutional investors to make significant investments,
shareholders to oversubscribe a rights issue and the banking sector to
enhance credit facilities which helped the company to significantly
improve its cash flow position as well as restructure loans.
During the year, the company also made significant investments to
up-grade production technology, information systems, enhanced effluent
treatment facility and training and development of the staff. One of the
key differentiations made during the year was to set up an innovation
centre to develop new fabric which became a tremendous success to
attract new business.
Today, the fabrics are sold under a special brand named ‘Inno’. The
company hopes to make further investments during the ensuing year and
looks forward to increasing the stakeholder value. |