Textured Jersey in emphatic recovery, 72% growth in second quarter profits
View(s):Textured Jersey Lanka PLC (TJL), has reported a top line of Rs. 3.5 billion and net profit of Rs. 282 million for the quarter ended 30th September 2014 (2Q FY2014/15), sharply up by 72 per cent in net profit from the previous corresponding period.
According to Bill Lam, Chairman of TJL, this marked an emphatic recovery from the temporary setback suffered in the previous quarter, with sales up 29 per cent. On a year on year basis the company was back on a strong growth trajectory with both sales and net profit up 7 per cent.
In a statement to the media, Mr. Lam said that gross profit for 2Q FY2014/15 reduced by 2 per cent year on year to Rs. 339 million, mainly due to lower margins arising from a combination of factors which included changes in product mix, outsourcing and higher dyes and chemical costs. However, the company managed to cut down its administrative and distribution expenses by 4 per cent to Rs. 99 million, which resulted in the operating profit remaining at Rs. 249 million, on par with the corresponding quarter of last year.
“TJL continued to maintain its near debt-free balance sheet as at 30th September 2014, with a strong cash position of Rs.1.6 billion, and only a temporary overdraft of Rs. 366 million,” it said.
Mr. Lam said that with strategic investments made in recent times coming into fruition, combined with a strong focus on innovation, quality and execution, the management is confident that TJL will be able to continue its growth trajectory and create shareholder value for the foreseeable future.