Sunday Observer Online
 

Home

Sunday, 23 August 2015

Untitled-1

observer
 ONLINE


OTHER PUBLICATIONS


OTHER LINKS

Marriage Proposals
Classified
Government Gazette

Textured Jersey continues growth trajectory

Textured Jersey Lanka PLC (TJL) reported a net profit of Rs. 206 mn for the quarter ended June 30, 2015(1Q FY 2015/16), an overall profit growth of 26% year-on-year.

Chairman, TJL, Bill Lam said the company achieved two key strategic milestones during the year; acquiring Ocean India (Pvt) Limited (OCI) and Quenby Lanka Prints (Pvt) Limited (QLP). During 1Q FY2015/16, pursuant to the conclusion of all legal and regulatory formalities, TJL consolidated QLP as a wholly-owned subsidiary of TJL with effect from June 1, 2015.

Accordingly in 1Q, FY 2015/16 TJL recorded consolidated revenue of Rs. 2.8 bn with a net profit of Rs. 206 mn creating a platform for synergies and further growth in value added products. For the period ended June 30, 2015, on a standalone basis, TJL recorded a net profit of Rs. 189 mn up 15% year-on-year.

This result was achieved on the back of a topline of Rs. 2.7 bn representing a 2% year-on-year increase, while the gross profit was Rs.297 mn, up 36% compared to the corresponding period last year.

The increase in gross profit could be directly attributable to the improved margins achieved during the quarter under review. Standalone TJL gross profit margin for 1Q, FY2015/16 was at 11% compared to 8% during the corresponding period last year.

According to Lam, this reflects the impact of the previously expanded manufacturing capacity now translating to bottom line margins. With QLP results being consolidated with effect from June 1, 2015, the consolidated gross profit for TJL for the quarter ended June 30, 2015 was Rs. 323mn.

Lam said that despite the increase in administrative expenses due to systems and processes being strengthened to accommodate the planned expansion strategy, the strong performance at gross profit level allowed TJL to post an operating profit of Rs.171mn for 1Q, FY 2015/16, recording 39% year-on-year growth on a standalone basis. On a consolidated basis, TJL reported an operating profit of Rs. 188 mn.

TJL continued to maintain a strong balance sheet as at June 30, 2015, with Rs.3.4 bn in cash and zero long-term debt.

However, Rs.1.4 bn of short-term debt was added to manage and optimize the timing effects of cash flows and investments. Despite the better cash position compared to a year earlier, lower interest rates led to net finance income dropping 51% to Rs. 8.7 mn compared to 1Q, FY2014/15.

The combined effect of improved gross margins and diligent overhead management enabled TJL to report a strong bottom line performance despite reductions in net finance income. TJL concluded the quarter under review with a net profit of Rs.189 mn on a standalone basis, growing 15% year-on-year, which resulted in a consolidated net profit of Rs. 206 mn.

 | EMAIL |   PRINTABLE VIEW | FEEDBACK

Daily News & Sunday Observer subscriptions
Daily News & Sunday Observer subscriptions
eMobile Adz
 

| News | Editorial | Finance | Features | Political | Security | Sports | Spectrum | World | Obituaries | Junior |

 
 

Produced by Lake House Copyright © 2015 The Associated Newspapers of Ceylon Ltd.

Comments and suggestions to : Web Editor