JAT Holdings records best 1Q in company’s history

Amidst adverse economic conditions, compounded by a month-long island-wide lockdown, JAT Holdings reported outstanding performance in 1Q of FY22, with a record revenue of Rs. 1.4 billion during the period. 

In FY21 this figure was Rs. 485 million, amidst the peak of the pandemic, and Rs. 1 billion in FY20, in the aftermath of the deadly Easter attacks. 

Consolidated Profit After Tax (PAT) for the quarter ended June 30th 2021 was Rs. 161 million, against losses of Rs. 107 million and Rs. 7 million for the same quarter in FY21 and FY20 respectively. 

As such, the trailing twelve months consolidated PAT of JAT Holdings came in at Rs. 869 million, of which Rs. 782 million accounts for the last 3 quarters, whilst Rs. 86 million relates to the second quarter of FY21 which was a subdued quarter due to pandemic conditions. 

JAT is in line to achieve PAT of Rs. 301 million in the corresponding second quarter of FY22. JAT said strong local market sales witnessed in the second half of FY21 continued during the period, with the Sri Lankan market contributing 71 percent of total consolidated revenue for the period, followed by the international market segment which contributed 29 percent of consolidated revenue during the quarter. 

Consolidated gross profit margins were recorded at 27 percent, in line with the budget for the quarter ended June 2021, whilst also demonstrating a margin expansion of around 4 percent, when compared to Q1 of FY21 and FY20. 

The consolidated PAT of Rs. 161 million accounted for 14 percent of the planned and targeted profit objective of Rs.1.2 billion for FY22.

JAT typically experiences seasonality in its profitability with around 70 percent of the full-year PAT being achieved during the second half of the financial year due to seasonally high revenue months such as November, December, February and March. This trend has been prevalent over the years. 

Meanwhile, shares of JAT Holdings is expected to begin trading on the Colombo Stock Exchange approximately around the 13th of August, subsequent to the conclusion ofits initial public offering (IPO), which will open for offers on the 20th of July 2021. 

The company intends to use the capital it raises from the public to further its near-term objectives, as outlined in its prospectus. These include enhancing existing R&D capabilities through the establishment of a state-of-the-art R&D facility, along with investments in a new manufacturing facility in Bangladesh to boost turnover and margins in that market. 

The company also plans to invest in the marketing development of its signature line of ‘WHITE by JAT’ premium white paints.