30 July 2019 12:00 am
The Hayleys group knit fabric maker Hayleys Fabric PLC saw a surge in earnings for the June quarter (1Q20), well supported by the firm’s top line, the interim financial accounts released to the Colombo Stock Exchange yesterday, showed.
The company posted earnings of Rs.1.09 per share or Rs.277.1 million for the quarter under review, compared to earnings of 8 cents or Rs.16.1 million reported for the same
quarter, last year.
The revenue for the period rose 41 percent year-on-year (YoY) to Rs.3.3 billion while cost of sales rose at a lesser pace of 35 percent YoY to Rs.2.8 billion, resulting in a gross profit of Rs.543.6 million, up 81 percent YoY.
An anticipated demand drop in China, who is also one the two leading suppliers of cotton yarn in the global market, is expected to curtail yarn prices, the key raw material of Hayleys Fabric, going forward.
Hayleys Fabric is a major supplier to the textile industry and delivers 2.5 million metres of fabric each month to apparel manufacturers from the factory located in Narthupana Estate, Neboda, in the Western Province.
The company, which was earlier known as Hayleys MGT Knitting Mills PLC, offers end-to-end solutions from design, development, printing, brushing and sueding of pure and blended polyester and cotton fabrics.
Hayleys PLC with its subsidiary companies holds 63.05 percent stake in Hayleys Fabric while the Employees’ Provident Fund has a 2.67 percent stake being the fifth largest shareholder of the company.