Textured Jersey sees strong demand from top customersView(s):
Textured Jersey Lanka PLC (TJL) said this week that with continued interest from its main customers – Victoria’s Secret, Marks and Spencer, Intimissimi and Decathlon, combined with the growth potential of emerging customers, demand will remain strong this year.
Company chairman Bill Lam said it continued its strong performance into the new financial year, posting a net profit of Rs.240 million for the quarter ended 30th June 2013, up 40 per cent year-on-year.
He said TJL has commenced adding capacity through subcontracting, while building long term relationships. This process, while addressing immediate capacity constraints is expected to enable TJL to further evaluate the long term options. “Given all these factors and a strong order book, TJL’s management remains confident that the company will continue to enhance shareholder value in the coming year,” he said in a quarterly report to shareholders.
The company declared a final dividend of Rs.0.58 per share for the year ended 31st March 2012/13, bringing the total dividend paid to Rs.1.24 per share.
Higher sales volumes compared to the corresponding period last year made it possible for TJL to achieve Rs.2.9 billion in sales revenue for 1Q FY2013/14, up 10 per cent year on year.
This also resulted in gross profit margins improving to 12.1 per cent in 1Q FY2013/14 versus 10.3 per cent in the corresponding quarter last year, he said.
The combination of higher sales volumes and improved margins resulted in TJL reporting an operating profit of Rs.228 million for the quarter under review, representing a 39 per cent year-on-year growth.
It said the full settlement of both short- and long-term borrowings as at 30 June 2013 resulted in the significantly lower finance expense for 1Q FY2013/14. Further, the company retained a cash balance of Rs.1.7 billion at the end of the period. On strategic initiatives, the construction of TJL’s multi-fuel boiler plant is progressing according to plan. The plant is expected to reduce TJL’s energy cost substantially when commissioned.
comments powered by Disqus