JAT Holdings lifts bottom line despite export slump

Founder/Managing Director Aelian Gunawardene

CEO/Executive Director Nishal Ferdinando

JAT Holdings PLC closed the financial year ending March 2025 on a stronger bottom line, with cost efficiencies and strategic integration efforts driving up profitability. 

This is despite the muted revenue growth and headwinds in key export markets. The company reported a 74 percent year-on-year increase in net profit, reaching Rs.1.78 billion, with net margins improving to 15 percent, from 9 percent a year ago.  Operating profit rose 37 percent to Rs.1.86 billion, supported by a notable improvement in gross profit margins, which expanded from 29 percent to 34 percent. The gains were attributed largely to the backward integration initiatives, including its acrylic binder and alkyd resin manufacturing plants. These improvements come against a backdrop of flat revenue performance. Group turnover stood at Rs.11.6 billion for the year, with topline growth stalled by a 26 percent decline in export revenue from Bangladesh, JAT’s largest foreign market, due to political instability, currency depreciation and a three-month disruption in operations. Bangladesh’s contribution to group revenue fell to 23 percent, down from its usual share of over 30 percent. Meanwhile, domestic revenue rose 14 percent, while earnings from other international markets increased 12 percent, partially offsetting the export shortfall. Segmentwise, strong growth was seen in emulsions (37 percent), brushes and rollers (42 percent) and project solutions (171 percent), the latter boosted by the easing of import restrictions.

Despite the regional volatility, JAT said it achieved its profitability targets through disciplined cost controls and proactive management, positioning the company to stay on course with its long-term strategy.

“We have remained steadfast in our strategic approach,” said CEO Nishal Ferdinando, citing the company’s focus on innovation and market expansion as it navigates a challenging external environment.