Top textile manufacturer Teejay Lanka PLC has witnessed impressive top and bottom line growth in the first half of 2019-20, with investments in expansion and internal measures continuing to generate anticipated improvements to net profit margins and other key performance indicators.
Noteworthy revenue and profit improvements in the second quarter of the year have enabled Sri Lanka’s only multinational textile producer to build on the strong start of the preceding quarter and report net profit of Rs 1.237 billion for the six months ending September 30, 2019, a growth of 75% over the corresponding period of the previous year.
Announcing the Company’s 8th consecutive quarter of revenue and profit growth, Teejay Lanka reported revenue of Rs 17.442 billion for the six months and Rs 9.317 billion for the second quarter, reflecting robust growth of 20% and 22% respectively. Profit before tax at Rs 1.518 billion for the six months was up a notable 73%, and increased by 82% to Rs 935.99 million for the three months ending 30th September 2019, Teejay Lanka disclosed in a filing with the Colombo Stock Exchange (CSE).
Net profit for the second quarter grew by 84% to Rs 783.15 million, the Company said.
Teejay Lanka Chairman Wing Tak Bill Lam said: “An improved product mix, internal efficiencies resulting from operational excellence initiatives and stabilisation of cotton prices can be attributed to the improvement of gross profit in the review period.”
Teejay Lanka CEO Shrihan Perera said the Company maintained administration and distribution to a cost-constant framework and that the depreciation of the Rupee also contributed to keeping the rate of growth of expenses below the rate of sales growth.
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