FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post



Poll

Can there be another Covid-19 wave in Sri Lanka?

Textured Jersey surpasses Rs. 1 b net profit milestone Vote_lcap68%Textured Jersey surpasses Rs. 1 b net profit milestone Vote_rcap 68% [ 178 ]
Textured Jersey surpasses Rs. 1 b net profit milestone Vote_lcap18%Textured Jersey surpasses Rs. 1 b net profit milestone Vote_rcap 18% [ 47 ]
Textured Jersey surpasses Rs. 1 b net profit milestone Vote_lcap13%Textured Jersey surpasses Rs. 1 b net profit milestone Vote_rcap 13% [ 35 ]

Total Votes : 260

STOCK MARKET TRAINING
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Textured Jersey surpasses Rs. 1 b net profit milestone

Textured Jersey surpasses Rs. 1 b net profit milestone

+4
salt
Redbulls
Jake Sully
CSE.SAS
8 posters

Go down  Message [Page 1 of 1]

CSE.SAS

CSE.SAS
Global Moderator
May 06, 2013 (LBO) - Sri Lanka's Textured Jersey Limited, a knit fabric maker, said net profits for the March 2013 quarter rose 27 percent to 321 million rupees, helped by tighter cost controls and net finance income.

The firm reported earnings of 49 cents per share for the quarter, in accounts filed with the Colombo Stock Exchange. For the year to March the company reported earnings of 1.55 rupees per share on total profits of 1.01 billion rupees.

Textured Jersey said last year's profits were helped by lower cotton prices despite a dip in demand from Europe.

In the March quarter revenues rose 0.5 percent to 3.1 billion rupees from a year earlier and cost of sales rose 6.7 percent to 2.75 billion rupees but gross profits fell 30 percent to 355 million rupees.

Cotton prices were up in the first quarter but orders were also strong and the company was expecting to pass on the costs in the second quarter.

"Looking towards the future, TJL continues to carry a strong order book with new product lines and continued interest from TJL’s top clients, which include Victoria’s Secret, Marks & Spencer, Intimissimi and Decathlon," chairman Bill Lam told shareholders.

"Management is therefore confident of maintaining sales volumes in the next quarter, and as TJL begins to pass through cotton price increases, management expects to regain margins in the coming quarters."

The company was also cash rich with no long-term borrowings and 371 million rupees in short term borrowings. Textured Jersey reported finance income of 112 million rupees for the quarter compared to forex losses seen last year.
http://www.lankabusinessonline.com/news/Sri_Lankas_Textured_Jersey_net_up_27-pct/1684390975

Jake Sully

Jake Sully
Manager - Equity Analytics
Manager - Equity Analytics
But there is no improvements in the GP margin. Net profit increased by tighter admin cost control and net finance income.

Why CoS increasing? No idea.
This trend to the next year is not a good sign.
A company cannot squeeze the admin expenses every day. Big chunk should come from the gross Profits.
They must have cut some directors fees and overseas travellin/trainings or something else.

Should i sell my shares after the final dividends?

Guys i need your input. (let say increase in Elect. price can be overcome by increase in sales price)


Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
Textured Jersey Lanka PLC (TJL), Sri Lanka’s leading provider of knit fabric, has delivered an impressive Rs. 1.02 b in net profit for the full year ended 31 March 2013 (FY2012/13), an increase of 62% year-on-year, as per the latest results released to the Colombo Stock Exchange (CSE).

A combination of a strong order book consisting of major customers such as Victoria’s Secret, Marks & Spencer, Intimissimi and Decathlon, improved operational efficiencies and strict control of overheads supported by a strong balance sheet allowed TJL to surpass the Rs. 1 b milestone in net profit for the year.

Besides this impressive performance, Textured Jersey has also maintained its generous dividend policy and paid out an interim dividend of Rs. 0.66 per share in March 2013, representing a pay-out of 62% of its nine-month profit ending 31 December 2012. Further, its share price has outperformed the ASPI with an increase of 54% during the 12-month period ending 6 May 2013 versus a 13% increase in the ASPI.

For the quarter ended 31 March 2013 (4Q FY2012/13) TJL reported a profit of Rs. 323 m – a 48% year-on-year increase. However, as per the release to the CSE by the Chairman of TJL Bill Lam, although the company achieved improved efficiencies and a better product mix, quarterly margins were affected by a rise in cotton prices and the typical lag in selling price adjustments. As a result, gross profit for the quarter came in at Rs. 355 m – a 31% decrease year-on-year.

In addition to this, according to Lam’s statement, during the corresponding quarter last year TJL benefitted from a sharp drop in cotton prices, which makes the year-on-year decline during 4Q FY2012/13 more pronounced. However, on an annual basis, the improved margins during the year resulted in gross profit for FY2012/13 remaining at Rs. 1.3 b, a marginal 1.5% below last year’s figure despite revenue for the year being 10.5% lower compared to last year.

Referring to the overheads, Lam stated: “TJL maintained a tight control on overheads, reducing administrative expenses by 64% and selling and distribution expenses by 12%in 4QFY2012/13 compared to the same period in the last financial year.”

Despite this, due to the lower quarterly gross profit, TJL’s operating profit for 4Q FY2012/13 was Rs. 288 m, a 21% decrease year on year. The annual operating profit for TJL, however, was 15% higher than the previous year, reaching Rs. 956 m for FY2012/13. Lam attributed this to the strict approach taken towards cost control during the year.

Additionally, TJL recorded a finance income of Rs. 33 m for the quarter, compared to a finance expense of Rs. 112 m during the same period of the last financial year. In his statement, Lam attributed this to TJL’s strong balance sheet position as at 31 March 2013, with zero long-term borrowings, Rs. 371 m in short-term borrowings compared with Rs. 657 m as at 31 March 2012 and a healthy cash balance of Rs. 2.21 b.

Lam stated that tight control of overheads and a strong cash position allowed TJL to record a net profit of Rs. 323 m for 4Q FY2012/13, up 48% compared with the same period in the last financial year. He also pointed out that this, combined with an impressive performance during the rest of the year, pushed TJL’s net profit over the Rs. 1 b mark to Rs. 1.02 b for the year ended 31 March 2013, a 62% year-over-year increase.

Further, according to Lam’s statement, a strong order book with new product lines and continued interest from TJL’s top clients will enable the company to maintain sales volumes for the next quarter as well, and as TJL begins to pass through cotton price increases, the management expects to regain margins in the coming quarters.

Commenting on the strategic initiatives, Lam stated: “The construction phase of TJL’s multi-fuel boiler plant is progressing according to plan. The plant, which will reduce TJL’s energy cost substantially, is scheduled to be commissioned during 2H FY2013/14.” He also stated that TJL’s expansion strategy is moving forward with detailed evaluations to ensure strong Return on Equity (ROE).

Lam concluded his statement by mentioning that given the positive outcome thus far, TJL’s management remains confident that the company will continue to enhance shareholder value and deliver strong results in the coming quarter and the next financial year.
http://www.ft.lk/2013/05/07/textured-jersey-surpasses-rs-1-b-net-profit-milestone/

salt

salt
Vice President - Equity Analytics
Vice President - Equity Analytics
TJL profits has come under pressure
It's down in USD terms
Thanks to interest income, profits maintained

TheProfessional2013

TheProfessional2013
Senior Equity Analytic
Senior Equity Analytic
Redda Thama

Jake Sully

Jake Sully
Manager - Equity Analytics
Manager - Equity Analytics
But there is no improvements in the GP margin. Net profit increased by tighter admin cost control and net finance income.

Why CoS increasing? No idea.
This trend to the next year is not a good sign.
A company cannot squeeze the admin expenses every day. Big chunk should come from the gross Profits.
They must have cut some directors fees and overseas travellin/trainings or something else.

Should i sell my shares after the final dividends?

Guys i need your input. (let say increase in Elect. price can be overcome by increase in sales price)

balapas


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Cost of sales increased due to yarn price increase in Jan- March. I talked with a guy in the industry before putting money in to TJL. They are slowly increasing sales volumes it seems so going forward GP should improve. Next year energy saving measures will further boost NP. TJL's case for the past year was declining GP margin but increasing NP margin due to cost cutting and finance income. They say decline in demand due to issues in Europe etc is the reason for drop in sales. You will notice this in USD P&L but in Rs you will not notice is this quarter due to rupee devaluation. I will sell with the dividend announcement and buy again lower since dividend yield is pretty good and will improve. They have no long term debt and cash balance is 2.2bn.



Last edited by balapas on Tue May 07, 2013 7:27 am; edited 1 time in total (Reason for editing : Additions)

KDDND

KDDND
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
I met one of the leading personal of TJL at National Cleaner Production Centre NCPC organized international conference in 2013....

According to his comments..... TJL has taken few major steps and bit of investments to save energy and natural resources ....

this could benefits to TJL in few ways..... seems TJL operations has good future and cost management.... and this could improve the result of TJL...

ultimately share may hit high little by little with the time.....
pirat

Stewie


Stock Trader
At 8.1x (6.4 time latest quarter annualized)PE the share seems fairly valued. Enough cash to pay a LKR 3 tax free dividend but the historical dividend payout record and expansion plans suggest that any dividend will be staggered over several months. TJL has rallied 30% on YTD lows looking more like any dividend is already factored in.
LKR 2.2Bn cash pile and debt free seems like perfectly positioned to buy MGT which is only LR 1.6Bn in market cap. Insha DP of course! MGT seems to be going nowhere under DP.

balapas


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Correct MGT is one of the companies Hayleys need to dispose of. Hope DP is good at selling companies as well that are not the best fit. However we can not assume TJL will buy this. No one would buy this looking at the huge accumulated losses and mounting debt.

Sponsored content


Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum