Sri Lanka’s Textured Jersey profit margins improve
EconomyNext – Better sales and profit margins enabled Textured Jersey Lanka’s net profit to shoot up 25 percent to 376 million for the quarter ended 31st December 2014 from a year ago.
Sales rose 12 percent to 3.8 billion rupees in the period, the firm, a joint venture between Brandix and Hong Kong-based Pacific Textile Holdings, said in a stock exchange filing.
Earnings per share for the December quarter rose to 57 cent from 46 cents the year before.
"The company’s strong cash position has allowed TJL to maintain its trend of generous dividend pay-outs with 0.50 cents per share being declared as an interim dividend for FY2014/15," the statement said.
Bill Lam, Chairman of TJL, attributed the performance to a combination of increased margins and strong revenue growth.
"The better demand conditions also enabled TJL to improve its product mix and achieve higher levels of production efficiencies through optimal capacity utilisation and planning," the statement said.
This in turn allowed the company to expand its gross profit margins to 12.8 percent from 10.6 percent of last year, causing gross profit to rise 34 percent to 481 million for 3Q FY2014/15.
Operating profit rose 34 percent to 354 million rupees from the year before.
Lam said this was achieved despite a 25 percent year-on-year increase in administrative and distribution expenses largely due to increases in provisions and some increases in training and development expenses.
Net profit for the nine months ended 31st December 2014 rose two percent to 822 million rupees.