JAT plans new plants in Bangladesh, Africa post IPO

As it prepares to announce an initial public offering (IPO) and listing on the Colombo Stock Exchange (CSE) in a bid to raise capital, JAT Holdings noted that these funds would be used to commission manufacturing plants in Bangladesh and Africa.

“Funds will be used to drive development activities such as the establishment of a new state-of-the-art R&D facility and the commissioning of a new manufacturing plant in Bangladesh, for which negotiations have been completed and initial implementation is underway. Discussions are also ongoing to commission a plant in Africa. Together, these new facilities will further consolidate the company’s position in these regional markets, while also contributing towards revenue and margin growth,” the company noted in a press release announcing its financial performance for the financial year ended on 31 March 2021.

JAT Holdings, ended FY 2020/21 posting a healthy Rs. 621 million profit after tax, completely reconciling losses incurred earlier in the year, driving gross profit margins from 27.6% to 30.7% YoY, while maintaining the net profit margin at 11.2%.

Discussing the company’s remarkable performance across the most challenging of financial years, JAT Holdings CEO Nishal Ferdinando said: “Being the leader in wood coatings, possessing a strong product portfolio in paints, brushes, ergonomic office furniture, decking, ceilings, bespoke kitchens, etc. in addition to having significant revenue streams from Bangladesh and other South Asian countries through multiple sales channels, enabled JAT to successfully mitigate the effects of the pandemic and remain resilient through 2020/21. 

FY 2020/21 saw the company enjoying its highest-ever recorded YoY revenue growth, 29%, in the Sri Lankan market for wood coatings, paints, and brushes. This is significant as it was achieved despite operating through more than two months of lockdowns. The company also enjoyed positive cash flows for over seven months of the year at a stretch, despite challenges, ending the year net positive with Rs. 490 million as at 31 March 2021. The strength of the company’s cash position is further attested to by a net debt (cash)/equity ratio of negative 0.03. Current and liquidity ratios increased to 3.26 and 2.29, respectively, against 2.61 and 1.76 from the year prior, while gearing saw an easing to 9.07% over the period.