Textured Jersey posts Rs. 468 mn 2Q net profit

30 October 2015 05:22 am - 0     - {{hitsCtrl.values.hits}}

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The TJL Group which had successfully concluded the acquisitions of Quenby Lanka Private Ltd. (QBL), on 1st September 2015 completed its second takeover of Ocean India Private Ltd. (OCI), recorded a consolidated revenue of Rs. 4.0 billion with a net profit of Rs. 468 million for the quarter ending 30th September 2015.  

The record achievement by the Group bears testimony to its synergies and the continued growth of its value added product portfolio.
Textured Jersey Lanka PLC (TJL) standalone performance has been reinforced with the consolidation of both QBL and OCI, resulting in the Group’s consolidated results reporting an impressive revenue growth of 16 percent and bottom-line growth of 66 percent. The Group’s gross margin growth of 84 percent was driven by the envisaged sourcing synergies and cost management strategies at group level.
Bill Lam, Chairman of TJL, in his review says that the company’s strong bottom-line growth which has delivered a net profit of Rs. 379 million on a standalone basis and Rs. 468 million on a consolidated basis; is despite incremental administrative overheads TJL had to incur in setting up robust systems, processes and infrastructure for long-term growth plans.  The final result being an EPS improvement from 0.43 in 2Q FY 2014/15 to 0.71 in 2Q FY 2015/16 for TJL consolidated, which reinforces the value of these acquisitions to all Shareholders. 
“TJL’s commitment to a strong balance sheet has been sustained as of 30 September 2015 in the midst of its acquisition cash outflow. TJL has optimized its working capital and remained unleveraged with a net cash surplus of Rs. 1.6 billion,” said the Chairman.
The Group’s results were achieved on the back of a topline of Rs. 4 billion representing a 16 percent year-on-year increase, while the gross profit came in at Rs. 622 million, up by 84 percent compared to the same period last year. 
The increase in gross profit could be directly attributable to the improved margins achieved during the quarter under review, through envisaged sourcing synergies coming in to play and cost management strategies. 
The standalone TJL gross profit margin for 2Q FY2015/16 was at 14 percent compared to 10 percent during the same period last year.  The bottom-line growth is driven primarily from economies of scale, tight cost management and improved operating efficiencies, which is reflected in the gross profit growth of 41 percent.   
TJL has widened its footprint by exploring different customer bases, reducing over dependency by limiting themselves to a few customers, and similarly come up with varied product ranges. Sriyan de Silva Wijeyeratne, the CEO of Textured Jersey Lanka PLC commented, “The company is well on its way to establishing a well-balanced retailer and vendor base and has seen strong customer demand for its cutting edge Innovations, both in the Fabric and Print space.  Quick turn around coupled with strong oversight and management within the acquired subsidiaries have also helped the bottom line”. Commenting on the consolidation of the Group, Bill Lam highlighted that with  the acquisitions now concluded, the TJL Group is on track towards long-term business and profitability growth. 
With TJL now on an established regional footing, the Chairman expresses confidence in the Group’s ability to sustain its growth momentum, and towards increasing shareholder value. 
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