Teejay Lanka posts Q1 FY21 revenue of Rs 4.7 bn

14 Aug '20

2 min read

Bill Lam (Left), Pubudu De Silva (Right)

Teejay Lanka, a Sri-Lanka based multinational textile producer, announced its financial results for the first quarter (Q1) of fiscal year 2020-21, ended on June 30, 2020. Group's revenue for the quarter declined 42 per cent to Rs 4.7 billion (Sri Lankan rupee). Operating profit for Q1 FY21 was Rs 15.2 million and profit before tax stood at Rs 13.9 million.

Group’s gross profit reduced 73 per cent to Rs 256 million. Administrative expenses dropped 31 per cent to Rs 262.8 million. Group incurred a net loss of Rs 31.5 million during Q1 FY21 compared to net profit of Rs 453.6 million same period prior year.

“To meet these trying times the team negotiated with suppliers to extend the credit period applicable to customers and went on a cost-cutting drive. This included a number of situational cost reduction projects such as salary reductions and freezing of new capital expenditure,” Bill Lam, chairman at Teejay Lanka, said in a press release. “These were some of the stringent measures to stabilise the ship in one of the biggest storms this company has had to face in its 20-year history.”

“The group is agile enough to introduce new fabrics for the manufacture of Personal Protection Equipment (PPE)," Pubudu De Silva, CEO at Teejay Lanka, said. “Teejay is working on new business opportunities including new customers and new product lines of defensive fabrics to meet customer demands relating to post Covid-19 requirements.”

“Reduction of reliance on a single destination for fabric has become high on the agenda of many customers who are now looking for diverse locations to source their fabric requirements,” De Silva said. “As a result, the last month of the quarter under review saw a significantly better performance than the first two months and this trend is expected to continue into the second quarter.”

Fibre2Fashion News Desk (JL)