Textured Jersey declares 62% dividend pay-out
View(s):Textured Jersey Lanka PLC (TJL), Sri Lanka’s leading provider of knit fabric to major global brands such as Victoria’s Secret, Marks & Spencer, Intimissimi and Decathlon, has declared a 62 per cent dividend pay-out in its third quarter to 31st December 2012 results.
This is probably one of the biggest dividends declared by a listed company in the Colombo Stock Exchange (CSE). Investors say this is one of the most admired listed companies for its good dividend payments offering good shareholder value.
The company reported a net profit of Rs. 365 million for the latest quarter, sharply up by 95 per cent compared to the same period last year.
“This has resulted in the company surpassing last year’s full year profit in just the first nine months of the current year, a noteworthy achievement given the challenging market conditions. Additionally the company declared a generous interim dividend of Rs. 0.66 per share representing a substantial 62 per cent pay-out,” the statement to the media said.
It quoted Textured Jersey Chairman Bill Lam as saying that as a result of “innovative and responsive product realignment strategies’ coming into fruition in the quarter under review, the company was able to achieve much higher sales volumes. As a result of higher margin products being added to the sales mix, combined with industry-leading production efficiencies, lower yarn costs and the depreciation of the Sri Lankan rupee, a substantial increase in gross profit margins was noted.
According to Mr Lam, “higher sales volumes also compensated for the lower average selling prices, enabling TJL to maintain revenue at Rs. 2.86 billion for the third quarter FY2012/13, a mere 7 per cent lower than the corresponding quarter in the previous financial year.”
TJL’s operating profit for 3Q FY2012/13 rose to Rs. 354 million, up 55 per cent year-on-year.
Looking towards the next quarter, Mr Lam said, “With a strong order book driven by encouraging results from new product lines and continued interest from TJL’s top clients, the management is confident in maintaining sales volumes for the next quarter as well.”
He said the construction phase of TJL’s multi-fuel boiler plant commenced during the quarter. The plant, which will reduce TJL’s energy cost substantially, is scheduled to be commissioned during the second half FY2013/14.
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