JAT Holdings post-tax 2021/22 surges to Rs.1.2 billion

Sri Lankan multinational conglomerate and market leader in wood coatings, JAT Holdings PLC, has posted its best ever financial year on record, doubling its Profit After Tax (PAT) during FY2021/22.

The company’s revenues rose by 66 per cent to Rs.8.897 billion, from Rs.5.36 billion in the year prior. Gross profit grew by 58 per cent to Rs. 2.603 billion, compared with Rs1.644 billion in FY2020/21 while PAT rose by 102 per cent to Rs.1.211 billion, up from Rs. 600 million in the previous year.

In a media release, the company said it also witnessed export revenues grow during the year to account for 23 per cent of group revenue, from 12 per cent in the year prior, as the business pivots towards more export- oriented activity.

Discussing the financial performance of the enterprise, Founder and Managing Director, Aelian Gunawardene said, “We have delivered, as promised, a profit after tax of 1.2 billion rupees. Furthermore, we have achieved this milestone amidst the most serious economic crisis that Sri Lanka has experienced. Therefore, this should stand as testament and reassurance to our investors and other stakeholders, that JAT Holdings PLC is capable of delivering exceptional value.”

JAT said it will embrace the present challenges and transform them, where possible, into opportunities, and implement a future focussed business strategy to consolidate its position and remain resilient amidst Sri Lanka’s many evolving crises.

Commenting on the business strategy, CEO Nishal Ferdinando said, “A major component of our resilience focused business strategy will be to pivot towards export-oriented and international business with a view to expanding export revenues as much as possible in the near to medium term. Doing so will provide the company with stability and the ability to outperform.”

To support this strategy, JAT has already implemented various initiatives in the Bangladesh market such as the establishment of a new state-of-the-art R&D facility and the commissioning of a manufacturing plant, along with expansion into the retail market. Furthermore, the company is also working to develop its operations in Africa, with discussions underway to commission a plant in the country.

In terms of the company’s project vertical, JAT says this division remains unaffected by import restrictions since the company has adequate stocks to ensure completion. Furthermore, projects involving BOI companies are not subject to import controls, and are pegged to the dollar. As such, these operations will continue as normal.

JAT has taken serious and calculated measures to mitigate the impacts of Sri Lanka’s various crises on the business. Explaining further, Mr. Ferdinando said, “Most importantly, we have been able to secure adequate stocks of raw materials for at least 6 to 9 months, and we are working on growing our stocks as and when possible, to ensure zero interruptions due to shortages of raw materials. Also, in addition to bolstering the company’s financial stability, the capital we raised at our IPO, approximately 1.5 billion rupees, has helped to significantly reduce our borrowing costs, thus reducing net finance costs, which provides us with considerable relief at this time.”