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Sri Lanka’s Teejay Lanka profits up in Dec quarter

ECONOMYNEXT – Sri Lanka’s Teejay Lanka Plc, a fabric maker which also has operations in India, said profits grew 31 percent to 718 million rupees in the December 2019 quarter helped by stable cotton prices, while finance income also grew.

The group reported earnings of 1.02 rupees per share for the quarter. For the nine months to December the group reported earnings of 2.79 rupees per share on total profits of 1.95 billion rupees, which were up 56 percent.

Teejay Lanka stocks traded at 40.20 rupees, up 20 cents on February 06.

“The overall growth in Gross Profit were primarily due to healthier mix, continued stabilisation of cotton prices, improved capacity, generated through Internal efficiencies..” Chairman Bill Lam told shareholders.

“Group added capacity through its modernisation strategy in Sri Lanka which came into operation during the quarter under review, increasing the capacity for the upcoming Quarters.”

Revenues grew 5 percent to 8.88 billion rupees, and cost of sales grew at a slower 3 percent to 7.6 billion rupees, helping gross profits grow 17 percent to 1.21 billion rupees.

“The overall market sentiments remain highly competitive and to withstand challenging market dynamics, we are continuously improving our product portfolio and quality whilst constantly working on reducing our costs structure,” Lam said.

“Our customers are continuously searching for novel products which are cost effective challenging the current selling princes.”

Finance income grew to a net 21 million rupees from negative 72 million rupees last year. (Colombo/Feb06/2020)





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