Teejay stays on trajectory in Q3 with net profit of Rs 778.4 million

Top textile manufacturer Teejay Lanka PLC has reported profit before tax of Rs 951.8 million and net profit of Rs 778.4 million for the third quarter of 2020-21, achieving growth of 12% and 8% respectively over the corresponding three months of the previous year.

The quarter’s performance also reflects the continuing trajectory of improvement since the start of the current financial year. Teejay Lanka converted the first quarter’s net loss of Rs 31.5 million to a net profit of Rs 631.3 million for the second quarter, and its net profit for the third quarter represents a further increase of 23% over the preceding quarter.

While improving net profit, Sri Lanka’s only multinational textile producer posted a revenue of Rs 8.5 billion for the three months, down 4% over the corresponding quarter of 2019-20 and a decline of 3.4% over the preceding quarter, but the Company has expressed confidence that it is on course to achieve its target of becoming a US$ 300 million business in the years ahead.

The impact of the extreme adversity of the first quarter of the year however continued to be visible in the Group’s results for the nine months ending 31st December 2020. Revenue was down 16% to Rs 22 billion, pre-tax profit declined by 26% to Rs 1.748 billion, and net profit for the period at Rs 1.378 billion reflected negative growth of 30%, according to financial statements filed with the Colombo Stock Exchange (CSE).

Teejay Lanka PLC has declared an interim dividend of Rs 1.65 per share to be paid to all shareholders for the year.