Teejay Lanka reports turnaround with Rs. 273.7 mn profit

Ajit Gunewardene

Pubudu De Silva

Teejay Lanka PLC, Sri Lanka’s first multinational textile manufacturer, has turned around its financial performance in the quarter ended June (1Q25).

The company reported a profit before tax of Rs. 273.7 million for the three months ending June 30, 2024, marking a significant recovery from a Rs. 701 million loss in the same period last year. 
Revenue for the three months, at Rs 15.4 billion, reflected an improvement of 10 percent over the corresponding quarter of the previous year, but gross profit grew by 357 percent to Rs. 1.3 billion, Teejay Lanka said in a filing with the Colombo Stock Exchange (CSE).

Consequently, the Group posted an operating profit of Rs. 382 million from an operating loss of Rs. 582 million in the first quarter of 2023-24, and reported net profit of Rs. 158.3 million for the quarter under review, in contrast to a net loss of Rs. 853 million in the corresponding period of the previous year. 

Teejay Lanka PLC also reported a strong balance sheet, ending the first quarter with cash and cash equivalents of Rs. 8.9 billion. 

Teejay Lanka Chairman Ajit Gunewardene said the Group had stepped up its efforts with a focused ESG framework, and embraced digitalisation as a way of life, seeing transformation as the way forward. 
“We are also focused on developing new product lines, and as a result several initiatives were taken to broaden the Group’s synthetic footprint, contributing to progress in both areas,” he said, adding that the Group is confident the strategies put in place will allow it to maintain its current growth trajectory and reach US$ 300 million in revenue by offering world class solutions to its customers.

Teejay Lanka CEO Pubudu De Silva said that the Group is witnessing a positive shift in orders to the Asian region and that higher volumes are being generated as a result of offloading from Bangladesh. 
He said the Group is evaluating the ongoing changes in the market while navigating the effects of identified volatilities and challenges by implementing long term strategies. 

The Teejay Group owns manufacturing facilities in Sri Lanka and India, along with a state-of-the-art printing facility in Sri Lanka. 

Teejay is a public quoted company with 40 percent public ownership and the backing of Sri Lanka’s largest apparel exporter Brandix Lanka which has a 32 percent stake in the company. Pacific Textiles of Hong Kong, whose key shareholder is the Tokyo Stock Exchange listed Toray Industries Inc., owns 27 percent of Teejay Lanka.