Textured Jersey profits grow, no debt or borrowings
View(s):Textured Jersey Lanka PLC (TJL) reported strong 16 per cent year-on-year growth in net profit to Rs. 805 million for the nine month period ended 31st December, a company statement said.
However net profit for the quarter ended 31st December 2013 (3Q FY2013/14) fell by 17.4 per cent year-on-year to Rs. 301 million with 3Q results in the previous year being significantly above average due to benefits from lower yarn prices, depreciation o the Sri Lankan rupee and a reversal in stock provisions.
Textured Jersey Chairman Bill Lam said the company’s strong balance sheet enabled a substantial dividend pay-out despite a year of heavy investment in key strategic initiatives.
The company’s capacity expansion and modernization project, aimed at increasing capacity by 10-12 per cent, is on track to be completed in March 2014. In addition, the construction of TJL’s multi-fuel boiler plant is expected to be completed in the next few months, which will lead to substantial energy cost reductions. The company entered into a Technical Service and Management Agreement with Ocean India Pvt Ltd, a knit fabric manufacturer located in India. This arrangement is expected to provide TJL with knowledge and experience in regional markets, the statement said.
Owing to a near debt-free balance sheet and a healthy cash position throughout the period, TJL was able to record Rs. 22 million in net finance income for 3Q FY2013/14, representing a substantial 95.1 per cent growth year-on-year. As per the results released, as at 31st December 2013, the company had no borrowings and a strong cash position of Rs. 2.3 billion.
Mr. Lam stated that TJL’s order book for the fourth quarter remains healthy and the management is confident of surpassing last year’s bottom line milestone of Rs. 1 billion. “Another strong year of results combined with the implementation of key strategic initiatives would add tremendous value to shareholders and act as a platform for continuous future growth,” the company said.