Home / Knowledge / News / Apparel/Garments / Textured Jersey Lanka reports 40% profit growth in Q1FY
Textured Jersey Lanka reports 40% profit growth in Q1FY
02
Sep '13
Textured Jersey Lanka PLC (TJL), Sri Lanka's leading provider of knit fabric, started the new financial year posting an impressive Rs.240mn net profit for the quarter ended 30th June 2013 (1Q FY2013/14), representing a strong 40% year-on-year growth.

Increased sales revenue, improved margins from higher capacity utilization stemming from increased sales volumes, and TJL's strong financial position were identified as the main reasons for its robust year-on-year performance.

During the quarter under review, the company also declared a Rs.0.58 per share final dividend for the last financial year ended 31st March 2013, bringing the total annual dividends to Rs.1.24 per share, a very generous 80% pay-out of the FY2012/13 full year profit.

According to Mr. Lam, the positive impact of the higher sales volumes and improved gross margins flowed down to the operating profit level, resulting in an operating profit margin of 8.0% for 1Q FY2013/14 compared to 6.3% during the same period of the previous year. TJL also reported a strong operating profit of Rs.228mn for the quarter under review, representing a 39% year-on-year growth.

Mentioning the company's financial position, Mr.Lam stated that the company retained a healthy cash balance of Rs.1.7bn as at 30th June 2013, and that it had completely settled both short- and long-term borrowings at the end of the period. As per his statement, this lowered the finance expense to an almost non-material level for 1Q FY2013/14, which allowed the company to record a net finance income of Rs.23.7mn for the quarter, up 200% year-on-year.

Summing up the quarterly result, Mr. Lam mentioned that the higher operating profits and the strong cash position allowed TJL to record a net profit of Rs.240mn for 1Q FY2013/14, 40% higher than the corresponding quarter of last year.

Further, according to Mr. Lam, the continued interest from TJL's main customers - Victoria's Secret, Marks & Spencer, Intimissimi and Decathlon - combined with the growth potential of emerging customers, makes TJL's management confident of strong demand for the next period as well.

On strategic initiatives, Mr.Lam stated that the construction of TJL's multi-fuel boiler plant was progressing according to plan. According to Mr. Lam, the plant is expected to reduce TJL's energy cost substantially when commissioned.

Commenting on the expansion strategy, the statement mentioned that TJL had commenced adding capacity through subcontracting, while building long term relationships. This process, while addressing immediate capacity constraints, is expected to enable TJL to further evaluate long term options.

Mr.Lam concluded his statement by mentioning that given all these factors and a strong order book, TJL's management remained confident that the company would continue to enhance shareholder value in the coming quarter as well.

Brandix


Must ReadView All

Apparel/Garments | On 21st Sep 2017

UK fashion exports £10.7 bn in 2016; highest till now

Exports of British fashion goods rose to £10.7 billion in 2016, the...

Apparel/Garments | On 21st Sep 2017

BFC announces partnership with Chinese firm JD.com

The British Fashion Council (BFC) has forged a new partnership...

Textiles | On 21st Sep 2017

Indonesia’s textile exports may reach $15 billion by 2019

Indonesia’s textile-related exports are projected to reach $15...

Interviews View All

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

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

September 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
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

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
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

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
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

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
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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