Teejay Lanka’s Q4 pre-tax profit up 27% in 2017-18
View(s):Teejay Lanka PLC has reported a pre-tax profit of Rs. 501.7 million at group level for the final quarter of 2017-18, to end a challenging year.
One of the region’s largest textile manufacturers, Teejay supplies fabric to some of the best international brands across the world. The Weft knit fabric specialist with manufacturing operations in Sri Lanka and India, achieved a 27 per cent growth in pre-tax profit for the three months ending 31st March 2018, an improvement of Rs 105.6 million over the corresponding quarter of the previous year despite higher raw material prices in global markets, according to a company media release.
Teejay Lanka PLC Chairman Bill Lam said the momentum generated by the strong performance of the fourth quarter with investments in expansion during the year and a full order book are an indication of a promising first quarter of 2018-19 and a promising full year.
Group revenue for the quarter reviewed grew 13 per cent to Rs 6.6 billion and gross profit improved by 11 per cent to Rs 731.8 million. Operating profit at Rs 486.7 million for the three months reflected a healthy growth of 31 per cent.
Post-tax profit for the quarter totalled Rs 508.4 million, an increase of 3 per cent principally due to a 93 per cent increase in income tax which resulted in a deferred tax asset of Rs 97.6 million as a one-off gain in the fourth quarter of 2016-17 reducing to Rs 6.7 million for the three months reviewed.
Mr. Lam attributed the group’s strong performance in the fourth quarter predominantly to capacity expansion, higher efficiencies, exciting innovations, the group’s growing product portfolio, its success in reducing administration costs by 15 per cent through cost control initiatives and containing the growth in distribution cost to a marginal 4 per cent with the increase in line with sales growth.
“We are now well-positioned for 2018-19, especially with the completion of the expansion of our plant in India, which has doubled its capacity in anticipation of our foray into new markets,” he added.
Looking ahead, Mr. Lam said the group has positioned itself during the year to reap the benefits of GSP + through its capacity expansion. Teejay’s manufacturing facilities are currently at optimal operating capacity and strategies have been initiated to pursue new opportunities from leveraging the group’s regional footing, providing flexible and better solutions and broadening its customer portfolio.