Teejay Group continued its revenue and net profit growth for the fourth consecutive quarter recording revenue of Rs 7.6 billion, 25%, YoY growth and net profit of Rs 425 million, a 15%, YoY Growth for second quarter of the financial year.
Despite the challenges faced in cotton prices which inhibited performance, expanded capacity in the group and a strong order book prevailing from GSP facilities that the group enjoys resulted in the continued growth into the 4th consecutive quarter.
Revenue for the first half was recorded Rs 14.4 billion compared to the previous year of Rs 11.5 billion an increase of 25%, whilst the Net Profit was recorded at Rs 704 million compared to the previous year of Rs 560 million a 20%, increase over the last year.
The Gross profit for the group recorded 859 million for Q2 an increase of 15% YoY despite the impacts stemming from Raw Material price hikes that prevailed during quarter. However, the margin for the 2nd quarter has improved to 11.3% compared to the 10.2% on a QoQ basis as a result of better loading and an improved mix with both US and CU business units increasing sales volumes.
Gross profit improvement was due to improved capacity utilization across the Group, depreciating currency, despite absorbing higher utility and RM costs. However, Gross margin was impacted due to RM and Utility cost increase during the quarter.
Distribution and administration expenses saw an increase of 7% and 18% respectively, and have been maintained at lower level as a percentage of sales for quarter 2. Cost control measures throughout the group stabilized costs and the depreciation of currency had a favorable impact on overheads whilst expansion related costs and performance related expenses that were built are reflected in the increased numbers. Income tax is liable in all entities and was maintained with a marginal decline, whilst interest income has increased due financing of the expansion through borrowings.
Teejay Group continues with a strong balance sheet from the previous quarter with a cash balance of Rs 3.4 billion despite the dividend payment of Rs 631million. The increase in working capital was driven by inventories to support expanded capacity and a strong order book in the coming quarters which have been historically, the group’s peak numbers.
0 comments: