Teejay’s 2Q net profit surges 75% | Sunday Observer

Teejay’s 2Q net profit surges 75%

Textile manufacturer Teejay Lanka PLC has witnessed impressive top and bottom line growth in the first half of 2019-20.

The company reported a 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.

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 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 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,” Perera said.

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.