JAT crosses Rs.1bn PAT amidst strong 3Q performance

• YTD local revenue increase by 10%
• 47% revenue increase in Bangladesh in 3Q against 2Q

MD Aelian Gunawardene

CEO Nishal Ferdinando

JAT Holdings PLC has recorded a stellar performance for 3Q of FY 2024/25, crossing the Rs.1 billion mark in profit after tax (PAT) for the first nine months of the financial year.

Local operations continued to demonstrate resilience, with revenue reaching Rs.5,571 million in the first nine months, reflecting a steady 10 percent year-on-year (YoY) growth.

The group’s flagship product, Sayerlack, in the wood coatings category, registered a 5 percent growth. The Masters brand continued its upward trajectory with an 8 percent YoY growth. The Brush category experienced substantial expansion, recording a 27 percent YoY increase. Project sales surged by an impressive 244 percent.
A notable factor affecting revenue from Bangladesh was the exchange rate impact, which contributed to a 14 percent decline when comparing the first nine months of the past two years.

Despite these challenges, 3Q recorded a 30 percent growth in total sales revenue compared to 2Q of the same fiscal year and a one percent growth compared to 3Q of the previous fiscal year.

For the quarter ending December 31, 2024, JAT Holdings’ gross profit was recorded at Rs.1,207 million, while the year-to-date (YTD) gross profits reached Rs.2,600 million, reflecting a 13 percent YoY growth. The YTD gross profit margin stands at 34 percent, marking a 5 percent YoY improvement, powered by backward vertical integration, which has significantly reduced input costs, enhanced supply chain resilience and improved production efficiencies across key manufacturing segments. 

PAT recorded for the quarter was Rs.490 million, while YTD PAT reached Rs.1,002 million, reflecting a 74 percent YoY growth, driven by the capitalisation of the Acrylic Binder Manufacturing Plant assets, which contributed to improved cost efficiencies and strengthened profitability.

Despite the macroeconomic challenges in Bangladesh, JAT Holdings recorded an impressive 47 percent quarter-on-quarter (3Q against 2Q) increase in revenue from Bangladesh, highlighting a strong recovery in the region. 
As the group heads into the season, operational profit margins have improved from 14 percent to 18 percent, a direct result of JAT’s continuous cost optimisation strategies and investments in backward vertical integration. 
JAT Holdings PLC Director/CEO Nishal Ferdinando commented, “Our strong 3Q performance underscores the success of our strategic investments in vertical integration and operational efficiency. By streamlining our production processes and enhancing cost efficiencies, we have positioned ourselves to navigate market challenges effectively while driving sustainable growth.”