Sri Lanka’s top textile maker Teejay knits strong start to FY23

 Teejay Lanka Chairman Ajit Gunewardene (left) and CEO Pubudu De Silva

• Q1 revenue more than doubles to Rs. 23.9 billion

Teejay Lanka PLC has made a positive start to 2022-23 posting Group revenue of Rs. 23.9 billion for the three months ending 30 June 2022. 

The Group achieved nearly half its full-year revenue of 2021-22 in just the first quarter of the new financial year as a result of the low base of the previous financial year due to the impacts of COVID, the depreciation of the Rupee and the passing on of yarn price increases during the last quarter. 

In a filing with the Colombo Stock Exchange (CSE), Sri Lanka’s largest textile manufacturer said it had also recorded significant growth in pre-tax and net profit at both Group and Company level in the quarter reviewed.

According to interim financial statements, Group profit before tax for the three months grew by more than Rs. 1 billion or 291% to Rs. 1.5 billion, while Group net profit for the period was up 301% to Rs. 1.2 billion.

At company level, revenue improved by 108% in the quarter under review to Rs. 12.9 billion, while profit before tax grew by 323% to Rs. 1.5 billion, and net profit increased by 311% to Rs. 1.3 billion.

Teejay Lanka PLC has notified the CSE that its Board of Directors has proposed the payment of a final dividend of Rs. 1.50 per share to the company’s shareholders for the year ended 31 March 2022.

Commenting on these results, Teejay Lanka Chairman Ajit Gunewardene said: “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 $ 26 million expansion project at Teejay India, adding 20 tons 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.”

Teejay Lanka was the first textile manufacturer in Sri Lanka to receive membership of the US Cotton Trust Protocol, and is a public quoted company with 40% public ownership. The company is backed by Sri Lanka’s largest apparel exporter Brandix Lanka which has a 32% stake. Pacific Textiles of Hong Kong, whose key shareholder is the Tokyo Stock Exchange listed Toray Industries Inc., owns 27% of Teejay Lanka. 

The company has been adjudged the Best Textile Exporter in Sri Lanka at the Presidential Export Awards presented by the Export Development Board (EDB) and has been named among the 100 Most Respected Companies in Sri Lanka by LMD. 

An ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007 compliant company and the first in the industry to develop green fabric, Teejay has been listed on the Colombo Stock Exchange (CSE) since 2011 and was included in the S&P Top 20 Index in Sri Lanka. The Company has also been named among the Forbes ‘200 Best under a Billion in Asia’ and been recognised as the ‘International Textile Firm of the Year’ and the ‘International Dyer and Finisher’ by World Textile Institute, London.