Sunday, January 28, 2018

GSP, Indian expansions help Teejay Group recorded strong profits

Bill Lam

Teejay Group recorded strong profits coupled with a YoY growth in profit before tax of 7% for the quarter, thereby delivering a marked swing in profit trend compared to the prior few quarters.

Revenue for the Group saw an increase of 5% for the period ending December 31, 2017, coupled with a solid order book situation. During the period the Group reported Rs. 6.6 billion revenue compared to Rs. 6.3 billion last year.

GSP concessions and Teejay Lanka operating in optimal capacity, coupled with early added volumes being done in India through capacity expansion, contributed towards the growth in revenue for the Group. The Group continued to be strong and profitable, and recorded a Net Profit of Rs 497 million compared to Rs 473 million last year for the same quarter.

The overhead management and cost control across the entire Group still strongly persists where we saw distribution expenses reduce by 16%. Administration costs on the other hand increased by 17% as a result of the expansion related expenses and structural changes that were carried out.

Taxes within the group increased 21% from Rs 79 million to 95 million, as result of improved profits and deferred tax assets that were converted to liabilities during the quarter.

“As a result of India’s new Capacity coming into full swing, the Group will soon drive regional Solutions to its Customers to secure Teejay’s long term growth trajectory. The strategic direction for the group continues to remain unchanged in general as a result,” said its Chairman, Bill Lam.

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