Textured Jersey posts Rs.1.2 bln profit for FY 2013/14
View(s):Textured Jersey Lanka PLC (TJL) reported a strong 14 per cent year-on-year growth in net profit to Rs. 1.2 billion for the year ended 31st March 2014, supported by growth in turnover.
The company’s strong cash position has allowed TJL to maintain its trend of very generous dividend pay-outs with Rs. 0.80 per share being declared as the final dividend for FY2013/14. According to Mr. Bill Lam, Chairman of Textured Jersey, the company managed another year of “impressive results despite recent adverse weather conditions faced in the United States, softening retailer demand growth”, according to a company release.
During the year under review, sales reached Rs. 12.7 billion, 16 per cent higher than that of last year. The company maintained its gross margin for FY2013/14 at 11 per cent levels, and was able to achieve a 15 per cent year-on-year growth in gross profit to Rs. 1.5 billion. The gross profit for 4Q FY2013/14 also increased 14 per cent year-on-year reaching Rs. 403 million. The same trend continued at the operating profit level, with FY2013/14 margins maintained around 8 per cent, with Rs. 1.1 billion reported as the annual operating profit, up 10 per cent year-on-year. This annual operating profit was achieved on the back of a strong quarterly profit of Rs. 313 million for 4Q FY2013/14 up 9 per cent year-on-year, it was noted.
As per the results released, the company had no borrowings and a strong cash position of Rs. 2.1 billion as at 31st March 2014.
Net profit for 4Q FY2013/14 was Rs. 352 million, representing a growth of 9 per cent year-on-year. Net profit for the year ended 31st March 2014 displayed a strong 14 per cent year-on-year growth pushing up the net profit to Rs. 1.2 billion.
Mr. Lam stated that TJL’s orders for the first quarter of FY2014/15 remains healthy due to the strong European order book which will offset the cautious outlook of US retailers. He mentioned that some US retailers had taken a cautious approach for a few months, softening the demand on TJL’s US business. Despite this, TJL’s European order book continues to be strong, thereby mitigating the overall impact. In general, the management remains confident of another year of impressive growth, as the business has already recovered from the temporary impact in the first quarter.