The Teejay Group announced a strong revenue growth of 33 percent over the nine months ended December 31,2016. The Group recorded a revenue of Rs 16.4 billion compared to the Rs. 12.3 billion during the corresponding period last year and announced a 66 percent growth in dividends to shareholders.
Teejay Chairman Bill Lam said that this was achieved through continually operating at optimal capacity, with a full order booking during the period. Even though there were higher sales, the gross profit growth was only 27% percent with Rs. 2.4 billion compared to that of last year’s Rs. 1.9 billion,” he added
The Group’s profit before tax (PBT) is reported as Rs 1.6 billion compared to the Rs. 1.4 billion last year, an increase of 16 percent.
Another impacting factor was taxation, as Teejay Lanka’s tax holiday ended in September 2016; while both Teejay India and Teejay Prints are subject to tax.
Despite this situation the Group reported an absolute profit after tax (PAT) of Rs. 1.5 billion compared to the Rs. 1.3 billion last year; showing an increase of 9 percent during the same period. “The Teejay Group continues to keep a sharp eye on its cash flow disciplines and has carried through a strong balance sheet from the previous quarter with a cash balance of Rs 4 billion. The consolidated Earnings per Share for the Group recorded SL Rs. 2.10 on a year on year basis showing a growth of 3 percent, although there was a 34 percent drop in growth during the quarter under review, due to the challenges discussed above,” Lam said.
Teejay CEO Sriyan de Silva Wijeyeratne says that despite minor setbacks, Teejay will forge ahead with new plans for expansion and growth. “Our aggressive enhancement in Divided with this interim Rs. 1.00 per share payment, is a clear indication of our confidence in the future potential we possess.
“The prospects of GSP Plus in the near future would further augment the Group’s progress, as all our added capacity in India and Sri Lanka will become eligible for this benefit,” he added.
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