Friday, 17 June 2016 18:53

TJL Group ‘cautiously' optimistic about the GSP+

The TJL Group (TJ), part of the Brandix Group in Knit Fabric manufacturing expressed optimism about the GSP+, a preferential tariff system for garment exports.

"We're happy about the fact that GSP+ is being negotiated and that Sri Lanka's chances at obtaining it are positive. We're cautiously optimistic about it, but we're not building our plans on it," Sriyan de Silva Wijeyeratne, MD/CEO of the company said

He added that the company won't be making its plans around any specific timelines pertaining to the GSP+, saying that if the country manages to secure it, it's definitely a positive add-on.

TJ fourth quarter financial results recorded year on year net profit growth of 63 per cent. The year to date net profit was Rs. 2,172 million. The boost in profit can be directly attributed to the synergy from acquisitions, stringent cost control initiatives, cutting edge innovations, and the company's growing product portfolio, Mr. Wijeyeratne said.

The acquired entities - Ocean India and Quenby Lanka, were turned around in the first half of the financial year. "The acquisitions are paying dividends," Mr. Wijeyeratne said adding that TJ is now investing in digital printers for Quenby and subsequently will expand TJ's portfolio in line with this. This company’s strategy is to undertake more profitable and research and development driven orders in line with the turkey model concept (R&D driven value added fabric orders).

The Group recorded a consolidated revenue of Rs. 5.5 billion in its fourth quarter, a 45 per cent growth and a net profit of Rs. 825 million a 62 per cent growth over the previous quarter. TJ's stand-alone performance during the year under review was a net profit of Rs. 1,483 million an 11 per cent growth over last year, on a topline of Rs. 14.18 billion. TJ's stand-alone bottom-line growth is driven by continuing its operating efficiencies, which is demonstrated in its gross profit growth of 26 per cent.

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