JAT Holdings PAT doubles to Rs. 1.21 bn
JAT Holdings PLC, has posted its best ever financial year on record, doubling its Profit After Tax (PAT) during FY2021/22.
Demonstrating resilient performance amidst the most challenging economic environment ever experienced in Sri Lanka, the Company’s Revenues rose by 66% percent to LKR 8.897 billion, from LKR 5.36 billion in the year prior.
Meanwhile, Gross Profits grew 58% to Rs 2.603 billion, compared with Rs 1.644 billion in FY2020/21, while Operating Profit rose by 73%. Most notably, JAT Holdings PLC witnessed its Profit After Tax expanding by an admirable102% to Rs 1.211 billion, up from Rs 600 million in the previous year. The company also witnessed export revenues grow during the year to account for 23% of Group Revenue, from 12% in the year prior, as the business pivots towards more export-oriented activity.
During the year, the Company was able to maintain its Gross Profit margins at 29%, while Operating Profit remained constrained at 13% due to input cost inflation and foreign exchange volatility during the period under review. However, the Company was able to make two separate interim dividend pay-outs to investors worth Rs 0.32 and Rs 0.25 per share, during the year.
An analysis of key sectoral growth further demonstrated that Wood Coatings grew by 61%, Decoratives (which includes WHITE by JAT) grew by 77% and Brushes grew by 43%, during the period under review, reflecting growth in both volume and value.
Founder and Managing Director, Aelian Gunawardene said, “We have delivered, as promised, a profit after tax of 1.2 billion rupees. Furthermore, we have achieved this milestone amidst the most serious economic crisis that Sri Lanka has experienced. Therefore, this should stand as testament and reassurance to our investors and other stakeholders, that JAT Holdings PLC is capable of delivering exceptional value, even in the face of adversity.”
CEO Nishal Ferdinando said, “A major component of our resilience focused business strategy will be to pivot towards export-oriented and international business with a view to expanding export revenues as much as possible in the near to medium term. Doing so will provide the Company with stability and the ability to outperform. In fact, during FY2021/22, export revenues have grown to account for 23% of Group Revenue, which is a significant increase from the previous year, where the figure was only 12%.”
The company is also working to develop its operations in Africa, with discussions underway to commission a plant in the country.
JAT Holdings PLC has already implemented various initiatives in the Bangladesh market such as the establishment of a new state-of-the-art R&D facility.
It also commissioned a manufacturing plant, along with expansion into the retail market.
JAT Holdings PLC has taken serious and calculated measures to mitigate the impacts of Sri Lanka’s various crises on the business. Explaining further, Ferdinando said, “Most importantly, we have been able to secure adequate stocks of raw materials for at least 6 to 9months, and we are working on growing our stocks as and when possible, to ensure zero interruptions due to shortages of raw materials.”
The Company is also pleased to note that it has delivered on the promise it made during its IPO, which was to deliver LKR 1.2 billion in Profits After Tax for FY 2021/22. Furthermore, the Company has made significant progress on its various IPO objectives.