Sri Lanka’s largest textile producer Teejay Lanka PLC has made a constructive start to FY23 posting a bunch income of Rs 23.9 billion for the three months ending 30th June 2022.

The group achieved almost half its full-12 months income of 2021-22 in simply the primary quarter of the brand new monetary 12 months on account of the low base of the earlier monetary 12 months due to the impacts of COVID, the depreciation of the rupee and the passing on of yarn worth will increase over the last quarter. 

The value of gross sales for the primary quarter stood at Rs.21.7 billion, representing  126 p.c improve when put next to the primary quarter of the earlier 12 months. Teejay mentioned the interval skilled modifications in elements corresponding to will increase in quantity, improve in uncooked materials costs and improve in prices to purchase dyes and gas.

In a submitting with the Colombo Stock Exchange (CSE), the corporate mentioned it recorded vital progress in pre-tax and internet revenue at each group and firm ranges within the quarter reviewed.

According to interim monetary statements, the group revenue earlier than tax for the three months grew by greater than Rs. 1 billion or 291 p.c to Rs 1.5 billion, whereas the group internet revenue for the interval was up 301 p.c to Rs 1.2 billion.
At the corporate degree, income improved by 108 p.c within the quarter underneath assessment to Rs. 12.9 billion, whereas revenue earlier than tax grew by 323 p.c to Rs. 1.5 billion, and internet revenue elevated by 311 p.c to Rs 1.3billion.

Teejay Lanka PLC has notified the CSE that its director board has proposed the fee of a ultimate dividend of Rs 1.50 per share to the corporate’s shareholders for the 12 months ended 31st March 2022.

Commenting on these outcomes, Teejay Lanka Chairman Ajit Gunewardene mentioned, “Our performance in the first quarter is extremely encouraging for all stakeholders, especially in the context of the continuing local and global challenges. The group completed a US$ 26 million expansion project at Teejay India, adding 20 tonnes a day to capacity. At the same time, India is viewed as an important strategic location positioning Teejay to gain from the anticipated growth in the apparel industries of countries like Bangladesh and Indonesia.”

Teejay Lanka CEO Pubudu De Silva added, “With the global increase in yarn prices coinciding with the depreciation of the Rupee, Teejay had an opportunity to strategically capitalise on its status as a preferred supplier to several international markets to increase sales income. We also embarked on several strategic initiatives to expedite progress. We focussed on new product development and digitalisation, to modernise operations and embrace an Environmental, Social and Governance or ESG framework. Headway was made in these aspects and progress was made in terms of expanding the Group’s synthetic footprint.”