Textile manufacturer Teejay Lanka PLC ended 2022-23 with revenue and gross profit growth. In a filing with the Colombo Stock Exchange (CSE), the Group reported revenue of Rs 84 billion for the 12 months ending March 31, 2023, reflecting healthy growth of 70%. Revenue for the fourth quarter was up 28% to Rs 17.3 billion. The Group said revenue growth was the result of an increase of average selling prices on a YOY basis and the depreciation of the Rupee.
The Group posted gross profit of Rs 6.4 billion for the year, a 39% improvement over the previous year, but witnessed a drop in its gross profit margin from 8.1% to 6.9% in the fourth quarter when comparedwith the same quarter of the previous year, with capacity under utilisation in all three plants continuing from the third quarter due to the softness in the market, increases in fixed costs due to expansion, and higher operating costs.
The Group’s profit before tax for the year improved by 9% to Rs 3.1 billion, but declined by 54% to Rs 409.1 million for the fourth quarter. Income tax nearly tripled to Rs 984.4 million for the full year, and almost quadrupled to Rs 257 million in the fourth quarter as a result of an increase in the tax rate from 14% to 30%. Consequently, the Group’s net profit of Rs 2.1 billion for the year reflected a decline of 16%, while net profit for the fourth quarter was down 82% to Rs 152.4million.
Despite these challenges, the Group ended the year with a noteworthy cashand cash equivalent balance of Rs 11.2 billion, an improvement of 36% over the preceding financial year as a result of liquidation of inventory.