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Large textile maker Teejay Lanka knits off to a strong start to FY23 – Business News

Sri Lanka’s largest textile maker, Teejay Lanka PLC, is off to a strong start for FY23, posting revenue of Rs 23.9 billion for the three months ending June 30, 2022.

The group achieved almost half of its revenue for the full year 2021-22 in the first quarter of the new financial year alone due to the weak base of the previous financial year due to the impacts of COVID, the depreciation of the rupee and the passing on of yarn price increases during the last quarter.

The cost of sales for the first quarter amounted to Rs 21.7 billion, which represents an increase of 126% compared to the first quarter of the previous year. Teejay said the period saw changes in factors such as increased volume, increased raw material prices and increased dye and fuel acquisition costs.

In a filing with the Colombo Stock Exchange (CSE), the company said it recorded significant growth in pre-tax and net profit at group and company level during the quarter under review.

According to the interim financial statements, the group’s pre-tax profit for the three months increased by more than Rs. 1 billion or 291% to Rs 1.5 billion, while the group’s net profit for the period increased by 301% at Rs 1.2 billion.
At the company level, revenue improved by 108% in the quarter under review to Rs. 12.9 billion, while pre-tax profit increased by 323% to Rs. 1.5 billion and the net profit increased by 311% to reach 1.3 billion rupees.

Teejay Lanka PLC has informed the CSE that its board has proposed the payment of a final dividend of Rs 1.50 per share to shareholders of the company for the financial year ending 31 March 2022.

Commenting on the results, Teejay Lanka Chairman Ajit Gunewardene said, “Our performance in the first quarter is extremely encouraging for all stakeholders, particularly against the backdrop of persistent local and global challenges. The group has completed a US$26 million expansion project at Teejay India, adding 20 tonnes per day to capacity. At the same time, India is seen as an important strategic location positioning Teejay to benefit from the expected growth in the apparel industries of countries like Bangladesh and Indonesia.

CEO of Teejay Lanka, Pubudu De Silva, added: “With the global increase in yarn prices coinciding with the depreciation of the Rupee, Teejay has had the opportunity to strategically capitalize on its status as a preferred supplier in several international markets. to increase sales revenue. We have also launched several strategic initiatives to accelerate progress. We focused on new product development and digitization, to modernize operations and adopt an environmental, social and governance or ESG framework. Progress has been made on these aspects and progress has been made in terms of expanding the synthetic footprint of the Group.