PAT Up Over 100%

Textured Jersey Lanka Ltd. closed its 2011/12 financial year first quarter (1Q) with a significant improvement in its results in comparison to 1Q of the previous financial year.
This is on the back of a successful Initial Public Offering of the shares of the company that took place in early July 2011.
The company achieved a 33% year on year (YoY) growth in its top line for 2011/12 1Q, recording a Rs. 2.7 bn.  turnover in the three months ended June 30, 2011. The Company’s Chairman Ashroff Omar said, “The company followed a focused change in its product and marketing strategy and achieved satisfactory results. These results were achieved not only by hard work, but even more importantly, by the unrelenting discipline and focus shown by all.”
Textured Jersey has been successful in passing on a greater portion of the price increases in its key raw material cotton to its customers, with prices rising on average by 30% without negatively impacting on volumes. The company also recorded a Rs. 251 mn. gross profit during the three months ended June 30, 2011; a 56% increase from the gross profit recorded during 2010/11 1Q.
Omar further said, “Significant cost savings were achieved by management in utilization of dyes & chemicals, machinery maintenance, packaging and transportation.  Improvements made to processes also helped achieve substantial cost savings.” These cost savings have helped Textured Jersey to keep its overheads constant and achieve growth in its operating profits as well. The operating profit that has been recorded by the company during 1Q is Rs. 156mn, a 140% YoY growth. Commenting on Textured Jersey’s operational performance, Omar said, “We have learned to shut out the things that are outside our scope and focus on those that we can influence.”
On the bottomline, the company recorded a Rs. 143.9 mn. net profit in 2011/12 1Q in comparison to Rs. 60.9mn in 2010/11. Commenting on the Q’s performance and elaborating on the company’s future prospects, Ashroff Omar said, “the company’s management remains committed to achieve greater profitability and we believe the impetus provided by the strong 1Q results will further strengthen the team’s ability to deliver expected results.