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Monday, 8 August 2011 00:00 - - {{hitsCtrl.values.hits}}
Textured Jersey Lanka Ltd. has closed its first quarter of the 2011/12 financial year with a significant improvement in its results in comparison to the first quarter of the previous financial year.
The company recorded a net profit of Rs. 143.9mn during the first quarter of 2011/12 in comparison to Rs. 60.9mn in 2010/11.
This is on the back of a successful Initial Public Offering of the shares of the company that took place in early July 2011.
The company has achieved a 33% year-on-year growth in its top line for the first quarter of 2011/12, recording a turnover of Rs. 2.7 bn. in the three months ended 30 June 2011.
Textured Jersey Chairman Ashroff Omar said: “The company followed a focused change in its product and marketing strategy, and achieved satisfactory results. These results were achieved not only by hard work, but even more importantly, by the unrelenting discipline and focus shown by all.”
Textured Jersey has been successful in passing on a greater portion of the increase in prices of its key raw material cotton to its customers, with prices rising on average by 30% without negatively impacting on volumes. The company has also recorded a gross profit of Rs. 251 mn during the three months ended 30 June 2011, which is a 56% increase from the gross profit recorded during the first quarter of 2010/11.
“Significant savings of costs were achieved by management in utilisation of dyes and chemicals, machinery maintenance, packaging and transportation. The improvements made to processes also helped achieve substantial cost savings,” Omar added.
These cost savings, he said have helped Textured Jersey to keep its overheads constant and achieve growth in its operating profits as well. The operating profit that has been recorded by the company during the first quarter is Rs. 156mn, which is a growth in excess of 140% in comparison to Q1 of 2010/11.
Commenting on the operational performance of Textured Jersey, Omar stated “We have learned to shut out the things that are outside our scope and focus on those that we can influence.”
Commenting on the performance of the quarter and elaborating on the future prospects of the company Omar stated: “The management of the company remains strongly committed to achieve greater profitability and we believe the impetus provided by the strong results of the first quarter will further strengthen the team’s ability to deliver the expected results.”
Textured Jersey to trade on CSE tomorrow
Textured Jersey Lanka Ltd., will be the latest corporate to trade on the Colombo Stock Exchange (CSE) on Tuesday bringing the total number of listed companies to 265.
Approximately 655 million shares of Textured Jersey with security code of TJL-N-000 assigned will be listed on the main board of the CSE under the Manufacturing Sector.
The Rs. 1.2 billion worth Textured Jersey IPO last month managed to be oversubscribed by 3 times drawing applications worth Rs. 3.68 billion. The Company offered 80 million shares at Rs. 15 each.
The IPO drew 16,952 applications requesting for 245.8 million shares worth Rs. 3.68 billion.
Retail category applications with payments via bank draft and cheques amounted to 16,904 requesting for 115.1 million shares worth Rs 1.72 billion. Applications with payment via bank guarantees amounted to 48 requesting for 130.7 million shares worth Rs. 1.96 billion.
