(Commonwealth_ Teejay Lanka, a leading multinational textile manufacturer in Sri Lanka, has demonstrated strong financial performance for the quarter ending March 31, 2024. With a net profit of Rs. 549.1 million, the company has achieved a remarkable 260% increase compared to the same period last year, along with a notable 15% improvement over the previous quarter. This impressive growth underscores Teejay Lanka’s resilience and effective operational strategies in navigating market dynamics.
Despite encountering challenges like currency appreciation, Teejay Lanka showcased resilience as sales volumes experienced an uptick. However, the Group’s revenue for the quarter amounted to Rs. 15.3 billion, indicating a 4% decline compared to the third quarter of the year and a 12% decrease from the revenue reported in the corresponding quarter of the previous year. Despite these hurdles, Teejay Lanka remains focused on navigating market dynamics and sustaining its growth trajectory.
For the fiscal year ending 31 March 2024, Teejay Lanka reported a revenue of Rs. 60.8 billion, profit before tax of Rs. 1.6 billion, and net profit of Rs. 1.1 billion. While these figures represent declines of 28%, 49%, and 48% respectively over the previous year, they underscore the impact of global market softening during the period.
Despite the challenging market conditions, Teejay Lanka ended the financial year on a strong note, boasting a robust balance sheet. With cash and cash equivalents amounting to Rs. 8.9 billion and a net assets base of Rs. 30.1 billion, the Group demonstrated financial stability and resilience. However, the net assets value per share of Rs. 42 experienced a 6% decline compared to the corresponding quarter, primarily due to the Rupee strengthening against the Dollar.
CEO Pubudu De Silva attributed the Group’s success to effective capacity utilization and operational efficiency across its two manufacturing locations. He emphasized the significance of further optimizing capacity utilization and ensuring stability in yarn prices, expressing unwavering confidence in Teejay Lanka’s prospects for the future. Through continued focus on operational excellence and prudent management practices, Teejay Lanka aims to sustain its growth momentum and navigate evolving market dynamics with resilience and agility.
Chairman Ajit Gunewardene expressed satisfaction with the multifaceted strategic initiatives implemented to counter the challenges faced by the Group. He highlighted the long-term priorities of Teejay Lanka, including digitalization, establishing a robust ESG (Environmental, Social, and Governance) framework, cost reduction, product innovation, synthetic capacity enhancement, and human capital development.
Gunewardene emphasized that these strategies are expected to yield positive results in the current financial year, positioning Teejay Lanka for sustained growth and resilience against market pressures and volatilities.
Teejay Group, a leading textile manufacturer, operates manufacturing plants in Sri Lanka and India, alongside a cutting-edge printing facility in Sri Lanka. Leveraging its robust financial performance, strategic initiatives, and unwavering commitment to sustainability and innovation, Teejay Lanka stands poised to thrive in the dynamic global textile market.
Despite challenges, Teejay Lanka reported impressive financial results, with a net profit of Rs. 549.1 million for the quarter ending March 31, 2024. This marked a substantial 260% increase from the previous year, reflecting the Group’s resilience and agility in navigating market fluctuations. Additionally, Teejay Lanka achieved a 15% improvement in net profit compared to the preceding quarter, underscoring its consistent growth trajectory.
Chairman Ajit Gunewardene lauded Teejay’s multifaceted strategic initiatives, which successfully reversed losses and responded adeptly to market dynamics. Embracing digitalization, implementing a robust Environmental, Social, and Governance (ESG) framework, and fostering innovation in product development are among the Group’s long-term priorities. These strategies are poised to fortify Teejay’s competitive edge and fuel growth in the coming years.
