Teejay Lanka in strong start to 2018-19

Capacity expansion in India and an increased order book from the US and EU have enabled Teejay Lanka PLC, Sri Lanka’s only multinational textile manufacturer, to make a strong start to 2018-19 with healthy sales and profit growth.

Profit after tax grew by 27 per cent to Rs 279.3 million on revenue of Rs. 6.8 billion, which was up 26 per cent, the company said in a filing with the Colombo Stock Exchange (CSE).

Based on this performance, Teejay Lanka has proposed a final dividend of 90 cents per share, reflecting the confident sentiments for the future of the group.

Elaborating on these results, Teejay Lanka PLC Chairman Bill Lam said securing the benefits of GSP through a carefully-managed European customer portfolio, and new product launches to US customers had contributed to the higher turnover.

“As a result of higher volumes, higher levels of efficiency were recorded to deliver a better year-onyear performance,” he said, disclosing that growth in turnover and net profit was recorded against an increasingly challenging business environment with short life cycle orders and more demand for discounted programmes.

Mr. Lam said the Teejay Group has already begun discussions with customers to pass on some of the raw material price increases. “However, as the situation continues, we are taking all measures to work on strategies to make sure the impact is managed during the second half,” he said.

One of the region’s largest textile manufacturers, Teejay supplies fabric to some of the best international brands across the world.