Teejay Lanka continues strong momentum into 4Q19
Weft knit fabric maker, Teejay Lanka PLC, reported some solid top and bottom line performance during the three months ended 31 March, 2019 (4Q19) as the company managed to offset the higher cost through price revisions and process improvements.
The company said expansion projects and relationships with new clients also helped the business.
Teejay Lanka, a joint venture between Brandix Lanka Private Limited and Pacific Textured Jersey, recorded revenues of Rs.8.8 billion for the three months under review, up 35 percent year-on-year (YOY). Cost of sales rose 33 percent YOY to Rs.7.8 billion due to higher cotton-yearn prices— albeit stabilizing during the quarter compared to the beginning of the year— higher dyes and chemical costs and the utility prices attributable to upward movement in the global fuel prices.
The company reported an operating profit of Rs.711.7 million, up 46 percent YOY.
As a result, the earnings for the period improved to 86 cents a share or Rs.605.8 million compared to 72 cents a share or Rs.508.4 million reported for the same period last year.
The company’s share ended at Rs.31.00, which is 40 cents or 1.31 percent higher yesterday, giving a valuation of Rs.21.8 billion.
“It is significant to note that this is the sixth consecutive quarter the group has improved revenue and net profit amidst challenging global market conditions.
The improvement in profits and revenue was a direct result of the expansion projects throughout the group, cost control and process improvement initiatives”, Teejay Lanka Chairman Bill Lam said in an earnings release.
For the year ended in March 31, 2019 the company reported earnings of Rs.2.65 a share or Rs.1.9 billion, up 17 percent YOY on revenue of Rs.31.8 billion, up 29 percent YOY.