Textured Jersey Lanka PLC (TJL) recovered and bounced back in the second fiscal quarter of 2014-15, by reporting a quarter-on-quarter top line growth of 29% and its bottom line skyrocketing 72%.
In the reporting quarter, TJL posted revenue of Rs 3.5 billion and net profit of Rs 282 million, which TJL says, marks a resounding recovery from the temporary setback it suffered in the previous quarter.
However on year-on-year basis, both sales and net profit grew more soberly by 7% at Brandix-owned TJL, in the second fiscal quarter ending September 30, 2014.
In the second quarter of 2014-14, gross profit fell 2% year on year to Rs 339 million, mainly due to lower margins arising from changes in product mix, outsourcing and higher dyes and chemical costs.
However, TJL managed to cut down its second quarter of 2014-15 administrative and distribution expenses by 4% from a year earlier quarter, to Rs 99 million.
This resulted in operating profit remaining at Rs 249 million, at par with the corresponding quarter of last year.
TJL said it continued to maintain its near debt-free balance sheet as on September 30, 2014, with a strong cash position of Rs 1.6 billion, and only a temporary overdraft of Rs 366 million.
However, cash balance was 21% less compared with the previous year, due to dividends and capital expenditure during the current quarter.
As a result, net finance income for the reporting quarter was Rs 16 million, 10% lower compared to second quarter of last year.
Other operating income consisting of technical service fees of Rs. 21 million, allowed TJL to close the quarter with a net profit of Rs 282 million, up 7% from last year’s second quarter.
TJL Chairman - Bill Lam said that the construction phase of the multi fuel co-generation boiler plant was successfully completed during the quarter and test operations had commenced.
“The plant will be fully operational in the coming quarters and is expected to generate substantial savings in energy costs,” he informed.
He added, “Similarly, the recently added 10-12% capacity will be fully utilised during the coming quarters with US demand coming back on track.”
He concluded by saying that with strategic investments coming into fruition, combined with focus on innovation, quality and execution, TJL will continue on its growth trajectory. (AR)
