Sri Lanka’s top textile manufacturer has reported profit before tax (PBT) of Rs 902.8 million at Group level for the three months ending 31st March 2021, reflecting growth of 67% over the corresponding quarter of the previous year, with revenue growing 40% to Rs 9.770 billion, its highest quarterly revenue since inception.
Group profit after tax improved by an even more impressive 80% to Rs 760.8 million. Over the preceding three quarters of the year, Teejay Lanka posted a Q1 net loss of Rs 31.5 million, a net profit of Rs 631.3 million in Q2, and a net profit of Rs 778.4 million for Q3.
Revenue for the quarter at Company level was up 56% to 6.297 billion, profit before tax grew by 52% to Rs 599.4 million and net profit increased by 65% to Rs 575 million, Teejay Lanka said in a filing with the Colombo Stock Exchange (CSE).
Group revenue for the year ending 31st March 2021 was down 4% to Rs 31.853 billion, in contrast to the 16% decline at the end of Q3. Similarly, Group profit before tax for the year, at Rs 2.650 billion reflected a reduction of 6% as against 26% at the end of Q3, while profit after tax for the year declined by 10% to Rs 2.139 billion, improving significantly from 30% negative as at 31st December 2020.
Teejay Lanka Chairman Bill Lam said: “The Group was able to continue its operations at all three plants by adhering to government health protocols to cater to the world fashion and textile industry.”
He disclosed that the Group closed the year with a consolidated debt-free balance sheet, with a cash balance of Rs 6.2 billion.
Teejay Lanka CEO Pubudu De Silva said the Group had kept administration costs to Rs 1.356 billion which is a decline of 5%, while marketing and distribution costs were curtailed to Rs 148 million, a decline of 24%,” he said. De Silva said the expansion of Teejay’s India plant is within the planned timeline despite the disruptions of the Covid-19 pandemic. “The investment of US$ 26 million will result in the plant’s daily output increasing to 20 tons, and contribute to the Group’s target of becoming a US$ 300 million business,” he said.
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