May 19, 2016 (LBO) – Sri Lanka’s TJL Group (TJ), a knit fabric manufacturer said its year to date net profit was 2,172 million rupees while the revenue recorded was 17.8 billion rupees, a 30 percent increase.
“The boost in profits can be directly attributed to the synergy from acquisitions,stringent cost control initiatives,cutting edge Innovations, and the Company’s growing product portfolio,” a statement said.
The Group recorded a consolidated revenue of 5.5 billion rupees in its fourth quarter, a 45 percent growth and a net profit of 825 million rupees a 62 percent growth over the previous quarter.
“Amidst an ever challenging global space we have continued to pursue every new opportunity; leveraging our regional footing and providing flexible and better solutions to a broader customer portfolio, through which we have enhanced our performance and increased value to our shareholders”said Bill Lam, Chairman of the Group.
He said that the cohesive and smooth transition of the teams coming under the single TJ operating structure had greatly contributed to the delivery of these outstanding results.
The full statement follows:
The TJL Group (TJ), one of the region’s largest Knit Fabric manufacturers, today announced its fourth quarter financial results, closing a resoundingly successful year with a record year on year net profit growth of63 percent. The year to date net profit was Rs. 2,172Mn, while the revenue recorded was Rs.17.8Bna 30percentincrease.
The strong Group performances achieved in quarter three, has been surpassed in this fourth quarter, clocking record breaking quarterly and full year financial results. The boost in profitscan be directly attributed to the synergy from acquisitions,stringent cost control initiatives,cutting edge Innovations, and the Company’s growing product portfolio.
“Amidst an ever challenging global space we have continued to pursue every new opportunity; leveraging our regional footing and providing flexible and better solutions to a broader customer portfolio, through whichwe have enhancedour performance and increased value to our shareholders”said Bill Lam, Chairman of the Group, adding that the cohesive and smooth transition of the teams coming under the single TJ operating structure had greatly contributed to the delivery of these outstanding results.
The Group recorded a consolidated revenue of Rs. 5.5Bn in its fourth quarter, a 45 percent growth and a net profit of Rs. 825Mn a 62 percentgrowth over the previous quarter. The gross profit growth over the year was driven by organic operational efficiencies plus sustained development of the acquired entities Ocean India and Quenby Lanka, which were turned around in the first half of the financial year. Gross profit percentage further improved with the deployment of TJ’s Coal plant, recording an87 percent increase over the previous quarter and an 86 percentincrease over the last financial year.
TJ’sstand-aloneperformance during the year under reviewwas a net profit of Rs.1,483Mnan 11 percent growth over last year, on a topline of Rs. 14.1Bn. TJ’s stand-alone bottom-line growth is driven by continuing its operating efficiencies, which is demonstrated in its gross profit growth of 26 percent.
Sriyan de Silva Wijeyeratne, MD/CEO of TJ said their successful year is partly due to astute execution across the entire Group structure, where the teams have smoothly transitioned taking on challenging positions with passion and dedication “While customers have responded positively to our broader solutions and stronger innovation capabilities, we owe our success largely to our people. We have introduced several structural changes across the Group and made internal transfers without causing ripples. The teams have come together smoothly, working towards a common goal to service customers, which has made a significant impact in the value addition we collectively provide. No doubt we are operating in an increasingly competitive industry, both globally and locally, but though challenges persist, we have proved our resilience in continuing to pursue new opportunities, and we plan to carry on sustainingour growth momentumwhich currently stands atseven straight quarters of net profit growth!” he said.
The end results have delivereda year to date revenue of 17.8Bnexceeding the 12-Months Performanceof the previous Financial Year 2014/15 by 30percent. The TJconsolidated Earnings per Sharerecords 1.23 quarterly and 3.25 year to date showingsolid growth ratesof 60 and 61 percent respectively.
Chairman Bill Lam says that TJ has continued its commitment to a strong balance sheet despite its acquisition cash outflow; optimizing its working capital and remaining unleveraged with a net cash surplus of Rs. 2.9Bn.“TJ will maintain its focus on innovation, execution excellence, speed and on time delivery,which they would drive at the highest levels,” he said.
TJ was founded in Sri Lanka in 2001. Listed on the Colombo Stock Exchange, TJ is backed by two leading industrialists – Pacific Textiles Hong Kong and Brandix Lanka as its main shareholders. The company supplies to some of the best international brands including Marks & Spencer, Victoria’s Secret, Intimissimi, Tezenis and Calvin Klein.