Teejay posts revenue growth of 24% in volatile 2016-17
View(s):Teejay Lanka PLC, the Sri Lanka headquartered world-class knit fabric solutions provider, has reported revenue of Rs. 22.2 billion at group level and net profit of Rs. 2 billion for the year ending March 31, 2017, despite substantial increases in raw material costs during much of the year.
The group said in a media statement that its achievement of 24.4 per cent top line growth and its success in keeping the reduction in net profit to 9.8 per cent were attributable to its focus during a year of volatility, on capacity utilisation, expanded operations, stringent cost controls and improved production efficiencies.
Prices of cotton yarn, Teejay’s most significant direct cost component, escalated by 20 per cent during nine of the 12 months reviewed, exerting pressure on gross profit margins, which reduced by 39.7 per cent in the fourth quarter alone.
At standalone company level, Teejay Lanka posted turnover growth of 11.2 per cent to Rs 15.7 billion for the year and net profit of Rs. 1.5 billion, reflecting an increase of 1.2 per cent over the preceding year.
“This performance is a relatively strong achievement in the context of the volatility in the yarn market,” Teejay Lanka PLC Chairman Bill Lam said. “Improved production efficiencies, stringent overhead controls and process streamlining will play a key role in the new financial year, coupled with the pursuit of a wider customer strategy.”