JAT Holdings PLC, a paint and coatings industry entity, reported a net profit of Rs. 1,782 million, a 74% increase YoY with margins rising from 9% to 15% for the financial year ending March 31.
Operating profit rose to Rs. 1,862 million which is a 37% increase YoY with margins increasing from 12% to 16%. These figures show the company’s ability to protect its bottom line despite headwinds.
JAT achieved its profitability targets, bolstered by disciplined cost controls and proactive cost management initiatives.
The company recorded a revenue of Rs. 11.6 billion, reflecting marginal year-on-year growth.
This was primarily impacted by a 26% decline in export revenues from Bangladesh, driven by prevailing political and economic instability in the region and the significant depreciation of the Bangladeshi currency against the Sri Lankan Rupee, JAT said in a statement.
However, this decline was partially offset by improved performance in other markets.
Revenue from Sri Lanka grew by 14%, while combined revenue from other international markets increased by 12%. The revenue contribution from Bangladesh, which typically accounts for over 30% in an average year, dropped to 23% in FY 2024/25, compounded by three months of business disruption due to economic and political instability in the country.
Key product segments showed significant growth, including Wood coatings (5%), Emulsions (37%), Brushes and Rollers (42%), and Projects (171%) – the latter being aided by the lifting of import restrictions.
JAT’s focused efforts on backward integration and operational efficiencies resulted in a notable increase in profitability, with gross profit margins rising from 29% to 34%.
This improvement was largely driven by cost savings from the acrylic binder manufacturing plant and from the alkyd resin manufacturing facility, reinforcing its commitment to long-term value creation.
