Teejay posts Rs. 778.4 mn net profit in Q3 | Daily News

Teejay posts Rs. 778.4 mn net profit in Q3

Chairman Bill Lam and CEO Pubudu De Silva
Chairman Bill Lam and CEO Pubudu De Silva

Top textile manufacturer Teejay Lanka PLC has reported profit before tax of Rs 951.8 million and net profit of Rs 778.4 million for the third quarter of 2020-21, achieving growth of 12% and 8% respectively over the corresponding three months of the previous year.

The quarter’s performance also reflects the continuing trajectory of improvement since the start of the current financial year. Teejay Lanka converted the first quarter’s net loss of Rs 31.5 million to a net profit of Rs 631.3 million for the second quarter and its net profit for the third quarter represents a further increase of 23% over the preceding quarter.

While improving net profit, Sri Lanka’s only multinational textile producer posted a revenue of Rs 8.5 billion for the three months, down 4% over the corresponding quarter of 2019-20 and a decline of 3.4% over the preceding quarter, but the Company has expressed confidence that it is on course to achieve its target of becoming a US$ 300 million business in the years ahead.

The impact of the extreme adversity of the first quarter of the year however continued to be visible in the Group’s results for the nine months ending 31st December 2020. Revenue was down 16% to Rs 22 billion, pre-tax profit declined by26% to Rs 1.748 billion, and net profit for the period at Rs 1.378 billion reflected negative growth of 30%, according to financial statements filed with the Colombo Stock Exchange (CSE).

Teejay Lanka PLC has declared an interim dividend of Rs 1.65 per share to be paid to all shareholders for the year.

Teejay Lanka Chairman Bill Lam said the Operational Excellence initiatives launched throughout the Company had resulted in greater control of non-operational and non-strategic costs and enabled the Group to reduce Distribution and Administration expenses by 21% and 4% respectively compared to the correspondingquarter of the previous year.

Teejay Lanka CEO Pubudu De Silva disclosed that in line with the Group’s target of achieving a revenue of US$ 300 million as well as the growing opportunity of orders moving to the South Asian region, Teejay has ventured in to a new and exciting expansion project in Teejay India, which entails construction of a new production plant with warehouse facilities, and an investment in flexible machinery which can convert from cotton production to synthetic material production.”