Sri Lanka’s Teejay Lanka group net up 5-pct, helped by GSP+
ECONOMYNEXT – Sri Lanka’s Teejay Lanka Plc, a knot fabric maker, said profits rose 5 percent to 496 million rupees in the December 2017 quarter from a year earlier, amid volatile cotton prices, but it had a strong order book and extra capacity in India.
The group reported earnings of 71 cents per share for the quarter. In the nine months to December it reported earnings of 1.54 rupees per share on total earnings of 1.08 billion rupees down 26 percent.
Revenues grew 5 percent to 6.6 billion rupees in the December quarter amid delays in getting new capacity in India utilized. Cost of sales rose 5 percent to 5.7 billion rupees and gross profit grew 4 percent to 5.7 billion rupees.
Chairman Bill Lam said teething issues in capacity expansion forced in India had slowed the pace but expected the problems to be sorted in the current quarter.
Rising cotton prices had pressured margins and another yarn price was expected, he said.
Teejay Lanka was operating at full capacity benefiting from GSP+ trade access to Europe.
Standalone profits at Teejay Lanka rose 24-pct to 369 millon rupees. (Colombo/Jan27/2018)