Home / Knowledge / News / Apparel/Garments / Textured Jersey profit skyrockets 95% in Q3 FY'13
Textured Jersey profit skyrockets 95% in Q3 FY'13
16
Feb '13
Textured Jersey Lanka PLC (TJL), Sri Lanka's leading provider of knit fabric to major global brands such as Victoria's Secret, Marks & Spencer, Intimissimi and Decathlon, reported Rs. 365mn in net profit for the quarter ended 31st December 2012 (3Q FY2012/13), growing 95% compared to the same period last year, as per the financial results released to the Colombo Stock Exchange (CSE).

This has resulted in the company surpassing last year's full year profit in just the first nine months of the current year, a noteworthy achievement given the challenging market conditions. Additionally the company declared a generous interim dividend of Rs. 0.66 per share representing a substantial 62% pay-out.

In his release to the CSE, Textured Jersey Chairman Mr Bill Lam stated that as a result of "innovative and responsive product realignment strategies coming into fruition in the quarter under review, the company was able to achieve much higher sales volumes." As a result of higher margin products being added to the sales mix, combined with industry-leading production efficiencies, lower yarn costs and the depreciation of the Sri Lankan rupee, a substantial increase in gross profit margins was noted in 3Q FY2012/13. Gross profits for the quarter reached Rs. 460mn, a 26% year-on-year increase. According to Mr Lam's statement, "higher sales volumes also compensated for the lower average selling prices, enabling TJL to maintain revenue at Rs. 2.86bn for 3Q FY2012/13, a mere 7% lower than the corresponding quarter in the previous financial year."

TJL's operating profit for 3Q FY2012/13 came in at Rs. 354mn, a significant 55% increase year-on-year. This was largely due to a 23% decrease in administrative expenses and a 24% decline in selling and distribution expenses compared to the same period of the last financial year.

Additionally, TJL recorded a finance income of Rs. 11mn for the quarter, compared to a finance expense of Rs. 40mn during the same period of the last financial year. In his statement, Mr Lam attributed this to TJL's strong balance sheet position as at 31st December 2012, with zero long-term borrowings, Rs. 53mn in short-term borrowings compared with Rs. 1.42bn as at 31st December 2011, and a healthy cash balance of Rs. 2bn.

Mr Lam stated that higher operating profits and a strong cash position allowed TJL to record a net profit of Rs. 365mn for 3Q FY2012/13, up 95% compared with the same period in the last financial year. He also pointed out that as a result of the strong growth in profits, the cumulative net profits for the nine months ended 31st December 2012 reached Rs. 694mn, surpassing the FY2011/12 full year profit of Rs. 628mn.

Looking towards the next quarter, Mr Lam's statement said, "With a strong order book driven by encouraging results from new product lines and continued interest from TJL's top clients, the management is confident in maintaining sales volumes for the next quarter as well. Combined with diligent management of operating costs and overheads, this will keep TJL on track to record strong results for 4Q FY2012/13 and the full financial year."


Must ReadView All

Robert Lighthizer speaking at the opening of the ministerial plenary of the 16th Forum of AGOA, in Lome. Courtesy: US Embassy in Togo

Textiles | On 17th Aug 2017

US committed to Africa, Lighthizer tells AGOA forum

The United States and Africa can jointly create a better business...

Textiles | On 17th Aug 2017

Sri Lankan textile exports down 4.1% in May 2017

After showing positive trend for two consecutive months, Sri Lankan...

Courtesy: American Eagle Outfitters/Aerie

Apparel/Garments | On 17th Aug 2017

ABFRL to sell American Eagle products in Indian market

Aditya Birla Fashion and Retail Ltd (ABFRL) has entered into a...

Interviews View All

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

August 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
66.7%
No
18.5%
Skip
14.8%

Total Votes: 27

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
37.0%
No
40.7%
Skip
22.2%

Total Votes: 27

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
81.5%
No
7.4%
Skip
11.1%

Total Votes: 27

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
55.6%
No
11.1%
Skip
33.3%

Total Votes: 27


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X