Sri Lanka Hayleys MGT makes profit in December quarter
EconomyNext – Hayleys MGT Knitting Mills, a Sri Lankan knitted fabric maker, reported a net profit of 130,662 US dollars in the third quarter ending 31 December 2014 from a loss of 168,283 dollars the year before.
Sales rose 12 percent to 17.4 million US dollars from a year ago, the company said in a stock exchange filing.
Net financing costs fell 46 percent, Hayleys MGT Knitting Mills, a unit of Hayleys, said.
The fabric manufacturers turned around in the 2014 financial year, making an operating profit, after suffering losses from fraud earlier.
Managing Director Rohan Goonetilleke said last year there was potential in the fabric business since the island’s apparel industry lacks local fabric supply and is forced to import large volumes of fabric, mainly from China and India.
"As a result, the competitive edge of the apparel industry is hampered on most occasions due to the longer lead times required for shipping," he told shareholders in the annual report last year.
"We believe there is a great potential to grow our the business in this area, as leading brands look for short lead times and timely delivery along with required quality levels, which we are ideally positioned to offer."
In the nine months to 31 December 2014, the firm reported a net profit of 407,426 dollars from a loss of 717,194 dollars the year before with sales up 10 percent to almost 50 million dollars.