Teejay 4Q profits expand 260%; year end profits down 48%

Teejay Lanka, Sri Lanka’s first multinational textile manufacturer reported net profit of Rs. 549.1 million for the three months ending 31st March 2024, up 260 percent over the corresponding quarter of the previous year and a 15 percent improvement over the preceding quarter. 

Despite an increase in sales volumes, the Group’s revenue for the quarter, at Rs 15.3 billion, was down 4 percent over the figure for the third quarter of the year and 12 percent lower than the revenue of the corresponding quarter of the previous year. This was due to the appreciation of the Sri Lanka Rupee. 

For the year ending 31st March 2024, Teejay Lanka reported revenue of Rs. 60.8 billion, profit before tax of Rs. 1.6 billion, and net profit of Rs. 1.1 billion, reflecting declines of 28 percent, 49 percent and 48 percent respectively over 2022-23 as a result of the softening of global market conditions during the year.

Nevertheless, the Group ended the financial year with a cash and cash equivalents balance of Rs. 8.9 billion and a net assets base of Rs. 30.1 billion. Teejay’s net assets value per share of Rs. 42 was lower by 6 percent when compared to the corresponding quarter, stemming from the strengthening of the Rupee against the Dollar, the Group said. “The Group has reported gross profit of Rs. 1.5 billion representing a year-on-year increase of 27 percent and a 17 percent increase when compared to the third quarter, as a result of the effective utilisation of the Group’s capacity at its two locations,” Teejay Lanka CEO Pubudu De Silva said. 

Commenting on the Group’s performance in the concluded financial year, Teejay Lanka Chairman Ajit Gunewardene noted the Group’s long-term priorities include digitalisation, establishing and executing a robust ESG framework, reducing costs, developing new products, enhancing synthetic capacity, and uplifting and empowering human capital to enhance resourcefulness.

“These strategies are expected to come into effect in the current financial year, indicating promising prospects for the future and enabling the Group to mitigate the impact of identified pressures, volatilities, and challenges,” he said.