Textured Jersey Lanka (TJL), manufacturing knit fabric has plans for a couple of projects in the Indian sub continent, officials said. “As market contractors we are considering regional play. We are looking at the Indian sub continent for a couple of projects,” TJL Chairman Ashroff Omar told the Business Times. He said that TJL is [...]

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Textured Jersey plans venturing into Indian sub continent

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Textured Jersey Lanka (TJL), manufacturing knit fabric has plans for a couple of projects in the Indian sub continent, officials said.
“As market contractors we are considering regional play. We are looking at the Indian sub continent for a couple of projects,” TJL Chairman Ashroff Omar told the Business Times. He said that TJL is hopeful that these will come into fruition by the middle of next year.

He said that while Sri Lanka is an alternate to Turkey in the knitted fabric market to Europe, the idea is to put out a better product. “As such we are constantly upgrading our product,” he added.

Mr. Omar in a statement said, “Even though market conditions are likely to remain challenging next quarter, management is confident of a boost in sales volume owing to a strong order book with renewed interest from TJL’s top clients, which include Victoria’s Secret, Marks & Spencer, Intimissimi and Decathlon”. He also mentioned that TJL was likely to continue on a strong profit growth trajectory for the next quarter as well, owing to the diligent management of operating costs and overheads.

On a more strategic note, Mr. Omar mentioned that the conceptual designs and regulatory approvals for TJL’s multi fuel boiler plant have already been completed and construction is expected to commence in the next quarter. Once operational, this project is expected to reduce TJL’s energy costs substantially. Further, according to the statement, the acquiring of a fabric mill within the region as a part of TJL’s expansion strategy is moving forward according to schedule.

The company doubled its net profits for the quarter ended 30 September 2012 (2Q FY2012/13), as per the financial results released to the Colombo Stock Exchange (CSE).

The company recorded a net profit of Rs. 157 million for the quarter versus Rs. 78 million during the same period in the last financial year, the statement said, noting that TJL was able to improve margins at every level for the quarter. Gross profits reached Rs. 210 million for 2Q FY2012/13, up seven per cent year on year, despite a 29 per cent decline in sales revenues. Gross profits were also up 10 per cent year-on-year for the first half (1H) of FY2012/13 as well.

The statement said that improved production efficiencies, stricter management of overheads, lower yarn costs and the Sri Lankan rupee depreciation as the reasons behind this improvement.




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