Sri Lanka’s multinational textile Manufacturer Teejay Lanka PLC’s profit after tax grew by 17 per cent to Rs 1.86 bn FY 2018-19 consequent to income tax increasing by 40 per cent. Revenue in Q4 of 2018-19 at Rs 8.82 bn showed an improvement of 35 per cent over Q4 of 2017-2018, while net profit for Q4 grew by 19 per cent to Rs 605.7 mn.

The company has ended FY 2018-19 on an impressive note, with consistent sales and profit gains of the preceding months bolstered by robust growth in the final quarter, the group’s sixth consecutive quarter of profit growth, said Teejay Lanka. Economy of scale benefits generated by record production volumes from its expanded manufacturing facilities in India and cost-control and process improvement initiatives combined to enable the weft knit fabric Specialist to post profit before tax of Rs 2.17 bn for the 12 months ending 31st March 2019, an improvement of 19.5 per cent on revenue of Rs 31.7 bn, which was up 29 per cent. “Prices of our main raw material, cotton yarn, increased in the beginning of the year and stabilised during Q4. Dyes and chemical costs increased significantly due to the challenges faced by the suppliers. We also saw utility prices increase during the year which was directly attributable to the global movement of fuel prices. Through process improvements and price revisions on finished goods, we were able to mitigate part of the cost escalation,” said Teejay Lanka Chairman Bill Lam.

Lam disclosed that the Teejay Group continued its strong balance sheet from the previous year with a net cash balance of Rs 4.9 bn. “The Group has been able to introduce two key global customers to its portfolio in the financial year and is on track to create strategic business partnerships for the future,” Lam added. “We have also been able to build further on strong existing customer relationships by providing viable solutions for continuous growth.” “Amidst challenging global market conditions, Teejay Group will continue to focus on its journey towards achieving excellence through process alignment and wastage reduction. We remain optimistic that rationalisation of the cost base and continuous focuses on operational excellence, product innovation and development, will help deliver sustainable profits,” said Lam.