Home / Knowledge / News / Apparel/Garments / Textured Jersey Lanka posts 16% growth in net profits
Textured Jersey Lanka posts 16% growth in net profits
29
Jan '14
Textured Jersey Lanka PLC (TJL) reported a strong 16% year-on-year growth in net profit to Rs. 805mn for the nine month period ended 31st December 2013, supported by robust growth in turnover.

The company maintained its generous dividend pay-out policy and declared an interim dividend of Rs. 0.50 per share representing 41% of the net profit for the nine months. According to Mr. Bill Lam, Chairman of Textured Jersey, the company's strong balance sheet enabled a substantial dividend pay-out despite a year of heavy investment in key strategic initiatives.

The company's capacity expansion and modernization project, aimed at increasing capacity by 10-12%, is on track to be completed in March 2014. In addition, the construction of TJL's multi-fuel boiler plant is expected to be completed in the next few months, which will lead to substantial energy cost reductions.

The company entered into a Technical Service and Management Agreement with Ocean India Private Ltd, a knit fabric manufacturer located in India. This arrangement is expected to provide TJL with knowledge and experience in regional markets.

During the quarter under review, TJL continued to record higher sales volumes as compared to the previous year. Sales for 3Q FY2013/14 reached Rs. 3.4bn, 16.7% higher than that of last year, placing the FY2013/14 nine month period cumulative sales figure at Rs. 9.5bn, up 19.7% year-on-year. The company maintained a healthy 8.1% operating profit margin for the nine month period ended 31st December 2013, causing a 14.7% growth in operating profit to Rs. 766mn.

Owing to a near debt-free balance sheet and a healthy cash position throughout the period, TJL was able to record Rs. 22mn in net finance income for 3Q FY2013/14, representing a substantial 95.1% growth year-on-year. As per the results released, as at 31st December 2013, the company had no borrowings and a strong cash position of Rs. 2.3bn.

Net profit for the quarter ended 31st December 2013 (3Q FY2013/14) was Rs. 301mn, representing a decline of 17.4% year-on-year, compared to the above average corresponding quarter of last year.

3Q results in the previous year were significantly above average due to benefits from lower yarn prices, depreciation of the Sri Lankan rupee and a reversal in stock provisions. However, net profit for the nine month period ended 31st December 2013 displayed a strong 16% year-on-year growth pushing up the net profit to Rs. 805mn.

Mr. Lam stated that TJL's order book for the fourth quarter remains healthy and the management is confident of surpassing last year's bottom line milestone of Rs. 1bn. Another strong year of results combined with the implementation of key strategic initiatives would add tremendous value to shareholders and act as a platform for continuous future growth.

Bran

Must ReadView All

Apparel/Garments | On 27th Mar 2017

NYCEDC announces $51mn package for NYC garment industry

New York City Economic Development Corporation (NYCEDC), in...

Apparel/Garments | On 27th Mar 2017

Fynd raises $500K Series A funding from Venture Catalysts

Fynd, an online to offline (O2O) e-commerce fashion marketplace, has...

Apparel/Garments | On 27th Mar 2017

India's fashion market to touch $30 bn by 2020: Report

The fashion market in India is estimated at $70 billion in 2016, with ...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search