ECONOMYNXT – Sri Lanka’s Teejay Lanka, a fabric maker, says profits grew 3 percent from a year earlier to 508.4 million rupees in the March 2018 quarter helped by capacity expansion and cost controls muting the impact of rising cotton prices.
The company reported earnings of 72 cents a share in the quarter, according to interim statements filed with the Colombo Stock Exchange. Earnings were 2.27 rupees a share for the 12-months to end March 2018 on revenues of 24.7 billion rupees, up 12 percent from a year earlier.
Teejay closed 50 cents lower to 28.90 rupees on Tuesday.
"The strong performance during the fourth quarter was achieved predominantly by capacity expansion, higher efficiencies, exciting innovations and the Group’s growing product portfolio," Bill Lam, Teejay Lanka Chairman told shareholders.
Revenue in the March quarter grew 13 percent from a year earlier to 6.55 billion rupees, cost of selling increasing at the same rate to 5.8 billion rupees resulted in gross profits increasing 11 percent to 731.8 million rupees.
Administrative expenses fell 15 percent to 293.6 million rupees and net finance income declined 41 percent to 15 million rupees.
Distribution costs rose 4 percent to 35 million rupees.
"The Group has positioned itself during the year to yield the benefits of GSP through its capacity expansion which is currently at optimal operating capacity and will be able to meet an ever-challenging global space," Lam said.
"Strategies have been initiated to keep pursuing new opportunities from leveraging our regional footing, providing flexible and better solutions and to broaden our customer portfolio".
The company has production facilities in India and Sri Lanka. (COLOMBO, 08 May, 2018)