Textured Jersey surpasses Rs. 1 billion net profit milestone
View(s):Textured Jersey Lanka PLC (TJL), Sri Lanka’s top provider of knit fabric, has reported Rs. 1.02 billion in net profit for the full year ended 31st March 2013 (FY2012/13), up 62 per cent year on year.
The company said in a statement that a combination of a strong order book consisting of major customers such as Victoria’s Secret, Marks & Spencer, Intimissimi and Decathlon, improved operational efficiencies and strict control of overheads supported by a strong balance sheet allowed TJL to surpass the Rs. 1 billion milestone in net profit for the year. “Textured Jersey has also maintained its generous dividend policy and paid out an interim dividend of Rs. 0.66 per share in March 2013, representing a pay-out of 62 per cent of its 9 month profit ending 31st December 2012,” the statement said. Some individual shareholders have earlier complimented the management for the consistent high dividend pay-out unlike many other companies.
For the quarter ended 31st March 2013 (4Q FY2012/13), TJL reported a profit of Rs. 323 million. However TJL Chairman Bill Lam said that although the company achieved improved efficiencies and a better product mix, quarterly margins were affected by a rise in cotton prices and the typical lag in selling price adjustments. As a result, gross profit for the quarter came down 31 per cent to Rs. 355 million, year on year. In addition to this, Mr. Lam said, during the corresponding quarter last year TJL benefitted from a sharp drop in cotton prices, which makes the year-on-year decline during 4Q FY2012/13, more pronounced. However, on an annual basis, the improved margins during the year resulted in gross profit for FY2012/13 remaining at Rs. 1.3 billon, a marginal 1.5 per cent below last year’s figure despite revenue for the year being 10.5% lower compared to last year.
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