JAT records highest ever PAT amidst export revenue growth of 317%

Sri Lanka’s market leader in wood coatings, JAT Holdings PLC, has delivered impressive results during the 3^rd Quarter of FY 2021/22, despite subdued market conditions.

Group Profit After Tax (PAT) rose sharply by 232 per cent, against the same period in the year prior, to Rs. 717 million for the quarter, while PAT for the trailing 12-months (TTM) stood at Rs. 1,102 million.

The 9-months under review also witnessed revenues rise by 72 per cent, while gross profit margins of the company remained steady at over 30 per cent, JAT said in a media release.

Export revenue share also rose to 22 per cent of total revenue, against 9 per cent achieved during the previous year.

“Investors will also be pleased to note that EPS (of trailing 12 months) stood at Rs. 2.16. This resilient financial performance comes as the company begins Q4, which has demonstrated to be the best quarter for JAT Holdings and the total coatings industry and accounts for as much as 45 per cent of PAT historically due to seasonal factors,” it said.

Nishal Ferdinando – Director / CEO said, “It is with great pleasure that we present investors with the solid results we’ve achieved over the last quarter, just six months since our IPO. These metrics were achieved amidst a subdued market environment and other challenges, volatile exchange rates and a scarcity of materials in the global market. However, we adapted to the market conditions and remained agile, maintaining our gross profit margins.”

 JAT Holdings’ Bangladesh operations witnessed a 379 per cent increase in revenue, which will be further boosted as a result of manufacturing commencing in Q4 of FY22 which is ahead of schedule. The company has also secured a pipeline of projects worth in excess of Rs. 1 billion, through luxury kitchen and wardrobe projects for premier developments such as Prime Grand Residencies and 606 The Address.

Commenting on the company’s immediate future plans, Aelian Gunawardene – Founder and Managing Director added: “At this rate, we’re on track to meet our 1.2-billion-rupee PAT target for the current financial year. As a result of our strong financial performance, we have also been able to secure stocks of raw materials and other items for at least the next five months, which gives us flexibility amidst the current challenges facing imports. We expect to end FY 2021/22 having met all targets and exceeding expectations in every way.”