Textured Jersey back on track as US demand recovers
Textured Jersey Lanka is expanding its capacity by 10-12%
Textured Jersey Lanka says it is "back on a strong growth trajectory" as sales surged 29% in the second quarter thanks to a recovery in demand from its US customers.
The company, which is one of Sri Lanka's largest producers of weft knit fabric for the intimate apparel and sportswear industries, booked sales of LKR 3.5bn (US$26.7m) in the three months to 30 September. Net profit jumped 72% from the prior quarter to LKR282m, helped by a technical services fee of LKR21m.
Chariman Bill Lam also noted that on a year-on-year basis, both sales and net profit were up 7%.
He also noted that a new multi-fuel boiler plant is due to become fully operational in the coming quarters and is "expected to generate substantial savings in energy costs," while a capacity expansion of 10-12% "will be fully utilised during the coming quarters with US demand coming back on track."
During the first quarter gross profit fell 2% year-on-year to LKR339m, which was attributed to lower margins arising from changes in the product mix, outsourcing and higher dye and chemical costs. However, the company cut its administrative and distribution expenses by 4% to LKR99m, which kept operating profit flat with the previous quarter at LKR249m.
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