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Fibres/​Yarns

Textured Jersey Lanka reports profit growth in December 2015 quarter

The company’s impressive year on year bottom-line growth is a testament to its first full quarter as a Group.

10th February 2016

Knitting Industry
 |  Sri Lanka

Knitwear, Knitted Outerwear

The company’s impressive year on year bottom-line growth is a testament to its first full quarter as a Group, consolidating the performances of its subsidiaries Ocean India Private (OCI) and Quenby Lanka Private (QPL).

“The Group gross margin growth is driven by the sustained growth of the acquired entities that were successfully turned around in H1, innovations and increased value additions and execution excellence across the entire Group structure,” the Group said. “It has further optimized its working capital and remained unleveraged with a net cash surplus of Rs. 2.1 billion.”

Growth

In the nine months to December the company reported earnings of 2.04 rupees per share on profits of 1.3 billion rupees, up by 64%. Revenues in the December quarter rose by 48% to 5.6 billion rupees, and sales rose at a slower 40% rate to 4.6 billion rupees.

The increase in gross profit could be directly attributed to consolidation, the improved margins achieved during the quarter under review, through envisaged sourcing synergies coming in to play and cost management strategies as well as the company’s fast growing value added product portfolio.

"Amidst the reality of an increasingly challenging global space we continue to pursue every new opportunity; leveraging our new regional footing and providing flexible and better solutions to a broader-based customer portfolio, through which we are confident of sustaining our performance and increasing shareholder value," said Group Chairman Bill Lam.

Gross profit

The firm’s gross profits rose by 103% to 976.7 million rupees, driven by the sustained growth of the group’s acquired entities that were successfully turned around in the first half of the financial year, increased value-addition to their customers and astute execution down the entire Group structure.

"Customers have responded positively to our broader solutions and stronger innovation capabilities. No doubt we are operating in an increasingly competitive industry, both globally and locally, but though challenges persist, we have proved our resilience in continuing to pursue new opportunities, and we are confident of our ability to sustain the growth momentum," said The company’s MD and CEO Sriyan de Silva Wijeyeratne.

"The team has consolidated our new subsidiaries and their teams exceptionally well, and we are seeing fantastic momentum in those areas,” he added.

Net profit

Textured Jersey Lanka as a standalone company has recorded a net profit of 402 million rupees, which was a 7% growth delivered on a top line of 3.9 billion rupees. Furthermore, the bottom-line growth was despite the cost of investments on strategic initiatives.

“The bottom-line growth is driven primarily from improved operating efficiencies, which is reflected in the gross profit growth of 23%,” the company explained.

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