JAT Holdings displays outstanding performance, recording the best Q1 in company history
View(s):
Mr. Aelian Gunawardene
JAT Holdings, amidst adverse economic conditions, compounded by a month-long island-wide lockdown, has reported a commendable performance in Q1 of FY22 (April-June) with record revenue of Rs. 1.4 billion against Rs.485 million in Q1 FY21 and Rs. 1 billion in FY20, in the aftermath of the Easter Attacks and the pandemic.
Consolidated Profit After Tax (PAT) for the quarter ended June 30th 2021 was Rs.161 million, against losses of Rs.107 million and Rs. 7 million for the same quarter in FY21 and FY20, respectively, the company said in a media release.
JAT said it hopes to achieve a PAT of Rs. 301 million in the corresponding second quarter of FY22. Speaking about the company’s Q1 performance, Aelian Gunawardene – Founder and Managing Director of JAT Holdings said, “Through agile, strategic decisions and the expertise of our diverse corporate management team, we have been able to take the necessary steps to deftly adapt to the post-pandemic environment. Our excellent business acumen, outstanding resource management and agile manoeuvring are attested to by the incredible performance we have achieved during what can only be described as a very tough quarter. As the year progresses, we anticipate further moderation of the pandemic and a wider recovery of economic activity. We intend to use these improving conditions, and the lessons we have learned, to continue to deliver stellar performance for our shareholders.”
JAT said strong local market sales witnessed in the second half of FY21 continued during the period, with the Sri Lankan market contributing 71 percent of total consolidated revenue for the period, followed by the international market segment which contributed 29 percent of consolidated revenue during the quarter. Consolidated gross profit margins were recorded at 27 percent, in line with the budget for the quarter ended June 2021, whilst also demonstrating a margin expansion of around 4 percent, when compared to Q1 of FY21 and FY20.
The statement said shares of JAT Holdings is expected to begin trading on the Colombo Stock Exchange approximately around August 13, subsequent to the conclusion of its initial public offering (IPO), which will open for offers on July 20. The company intends to use the capital it raises from the public to further its near-term objectives, as outlined in its prospectus. These include enhancing existing R&D capabilities through the establishment of a state-of-the-art R&D facility, along with investments in a new manufacturing facility in Bangladesh to boost turnover and margins in that market. The company also plans to invest in the marketing development of its signature line of “WHITE by JAT”, premium white paints.