A report on Lanka Business Online (LBO) on Friday, said that profits at Sri Lanka's Textured Jersey, a knit goods manufacturing unit of Brandix apparel group, rose 136% in the June 2011 to 143.9 million rupees from a year earlier, despite a rise in cotton prices.

According to the report, the company said revenues grew 33% in the quarter to 2.7 billion rupees and that it had passed on a greater proportion of cost increases to customers with an average 30% in prices without hurting volumes.

Textured Jersey said it had also cut costs helping increase operating profits.

"Significant savings of costs were achieved by management in utilization of dyes and chemicals, machinery maintenance, packaging and transportation," Brandix chairman Ashroff Omar said in a statement.

"The improvements made to processes also helped achieve substantial cost savings."

The report went on to say that the company's operating profits rose 140% to 156 million rupees in the June quarter.

Textured Jersey is a joint venture between Brandix, and Hong Kong-based Pacific Textile Holdings. It raised 1.2 billion rupees in an initial public offering in July selling shares at 15.0 rupees. The stock is to begin trading on 9 August.

In the year to March 2011, Textured Jersey made 684 million rupees in profits, up from 577 million rupees a year earlier, the report said.

Source: LBO