Teejay reports Rs 273.7 mn PBT in Q1
Strategic responses to challenges facing the textile manufacturing industry have generated a positive start to 2024-25 for Teejay Lanka PLC, Sri Lanka’s first multinational textile manufacturer.
The Group has reported profit before tax of Rs. 273.7 million for the three months ending June 30, 2024, reversing a loss of Rs. 701 million in the first quarter of the preceding year. Revenue for the three months, at Rs. 15.4 billion, reflected an improvement of 10% over the corresponding quarter of the previous year, but gross profit grew by 357% to Rs. 1.3 billion, Teejay Lanka said in a filing with the Colombo Stock Exchange (CSE).
Consequently, the Group posted an operating profit of Rs. 382 million from an operating loss of Rs. 582 million in the first quarter of 2023-24, and reported net profit of Rs. 158.3 million for the quarter under review, in contrast to a net loss of Rs. 853 million in the corresponding period of the previous year.
Teejay Lanka PLC also reported a strong balance sheet, ending the first quarter with cash and cash equivalents of Rs. 8.9 billion.
Teejay Lanka Chairman Ajit Gunewardene said the Group had stepped up its efforts with a focused ESG framework, and embraced digitalization as a way of life, seeing transformation as the way forward.
“We are also focused on developing new product lines, and as a result several initiatives were taken to broaden the Group’s synthetic footprint, contributing to progress in both areas,” he said, adding that the Group is confident that the strategies put in place will allow it to maintain its current growth trajectory and reach US$ 300 million in revenue by offering world class solutions to its customers.
Teejay Lanka CEO Pubudu De Silva said that the Group is witnessing a positive shift in orders to the Asian region and that higher volumes are being generated as a result of offloading from Bangladesh.
He said the Group is evaluating the ongoing changes in the market while navigating the effects of identified volatilities and challenges by implementing long term strategies.
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