Textured Jersey closes 2015/16 FY on a resounding note

The TJL Group (TJ), one of the region’s largest Knit Fabric manufacturers, yesterday announced its fourth quarter financial results, closing a resoundingly successful year with a record year on year net profit growth of63%. 

The year to date net profit was Rs. 2,172Mn, while the revenue recorded was Rs.17.8Bna 30percentincrease.

The strong Group performances achieved in quarter three, has been surpassed in this fourth quarter, clocking record breaking quarterly and full year financial results. The boost in profits can be directly attributed to the synergy from acquisitions, stringent cost control initiatives, cutting edge Innovations, and the Company’s growing product portfolio.

“Amidst an ever challenging global space we have continued to pursue every new opportunity; leveraging our regional footing and providing flexible and better solutions to a broader customer portfolio, through which we have enhanced our performance and increased value to our shareholders” said Bill Lam, Chairman of the Group, adding that the cohesive and smooth transition of the teams coming under the single TJ operating structure had greatly contributed to the delivery of these outstanding results.

The Group recorded a consolidated revenue of Rs. 5.5Bn in its fourth quarter, a 45% growth and a net profit of Rs. 825Mn a 62% growth over the previous quarter. The gross profit growth over the year was driven by organic operational efficiencies plus sustained development of the acquired entities Ocean India and Quenby Lanka, which were turned around in the first half of the financial year. Gross profit%age further improved with the deployment of TJ’s Coal plant, recording an87% increase over the previous quarter and an 86% increase over the last financial year. 

TJ’s stand-alone performance during the year under review was a net profit of Rs.1,483Mnan 11% growth over last year, on a topline of Rs. 14.1Bn. TJ’s stand-alone bottom-line growth is driven by continuing its operating efficiencies, which is demonstrated in its gross profit growth of 26%.

Sriyan de Silva Wijeyeratne, MD/CEO of TJ said their successful year is partly due to astute execution across the entire Group structure, where the teams have smoothly transitioned taking on challenging positions with passion and dedication “While customers have responded positively to our broader solutions and stronger innovation capabilities, we owe our success largely to our people.  We have introduced several structural changes across the Group and made internal transfers without causing ripples. The teams have come together smoothly, working towards a common goal to service customers, which has made a significant impact in the value addition we collectively provide. No doubt we are operating in an increasingly competitive industry, both globally and locally, but though challenges persist, we have proved our resilience in continuing to pursue new opportunities, and we plan to  carry on sustaining our growth momentum which currently stands at seven straight quarters of net profit growth!” he said. 

The end results have delivered a year to date revenue of 17.8Bnexceeding the 12-Months Performance of the previous Financial Year 2014/15 by 30percent. The TJ consolidated Earnings per Share records 1.23 quarterly and 3.25 year to date showing solid growth rates of 60 and 61% respectively.

Chairman Bill Lam says that TJ has continued its commitment to a strong balance sheet despite its acquisition cash outflow; optimizing its working capital and remaining unleveraged with a net cash surplus of Rs. 2.9Bn.“TJ will maintain its focus on innovation, execution excellence, speed and on time delivery, which they would drive at the highest levels,” he said. 

TJ was founded in Sri Lanka in 2001.  Listed on the Colombo Stock Exchange, TJ is backed by two leading industrialists - Pacific Textiles Hong Kong and Brandix Lanka as its main shareholders.  The company supplies to some of the best international brands including Marks & Spencer, Victoria’s Secret, Intimissimi, Tezenis and Calvin Klein.