Teejay Lanka PlcCSELK: TJL.N0000

Interim Financials as at 30th June 2024

Aug 8, 2024 at 3:33 AM UTC · Issued by Teejay Lanka Plc

TEEJAY LANKA PLC

Condensed Interim Financial Statements

Depth Beyond Surface

Period Ended 30 June 2024

TEEJAY LANKA PLC

Review of the Financials

The Teejay Group closed the first quarter of FY 24/25 with a Profit after Tax of LKR 0.16 Bn which is 119% improvement when compared to the figures reported during the same period of the previous year. This increase was mainly attributable to the timely execution of strategic initiative during the period including stringent inventory management initiatives and efficient cost reduction strategies.

Group Revenue of LKR 15.4 Bn, representing a 10% increase when compared to the first quarter of the previous year. The increase can be attributed to improvements in the Group's sales mix, an indication of changing market conditions, offering optimism for improved performance in the upcoming quarters despite of Rupee depreciation. Nevertheless, the Group is overseeing a positive shift of orders to Asian region due to China One Plus while seeing opportunities of more volume being shifted to Sri Lanka as a result of offloading from Bangladesh.

The Group achieved a Gross Profit of LKR 1.3 Bn for the quarter under review with a 357% improvement when compared to the figures reported during the same period of the previous year. The group's advantage due to its multination footing offers the flexibility to capitalise on its location advantage to optimise capacity utilisation and operational excellence. Additionally, sustained stability in yarn prices has positively contributed to the growth of the group's top line and profitability.

The distribution and administration expenses increase from 7% & 6% respectively comparing the last years' same period as a result of volume growth. The Group closed with a strong balance sheet and a cash balance of LRK 8.9 Bn. With a steady performance maintained throughout the period The net assets base at the close of the quarter stood at LKR 30.4 Bn with a value of LKR 42.2 net assets per share, representing an increase of 3% compared to the previous year same quarter. Teejay proposed & paid LKR 0.75 per share as final dividend to the company's shareholders for the year ended 31st March 2024.

With a number of strategic initiatives to enhance the production process, Teejay proceeded with its steady advancement towards operational excellence. Teejay stepped up its efforts with a focused ESG framework and embrace digitalisation as a way of life, seeing transformation as the way forward. The Group is also focused on developing new product lines & as a result, several initiatives were made to broaden the Group's synthetic footprint, contributing to progress in both areas. The Group is confident that the strategies put in place will allow the Group to maintain its current growth trajectory and reach USD 300 million by offering world class solutions to its customers.

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TEEJAY LANKA PLC

Statement of Profit or Loss

(All amounts in Sri Lanka Rupees Thousands)

		Group
		Quarter Ended			Year Ended
		30 June			31 March
	2024	2023	Variance	2024
	Unaudited	Unaudited			Audited
Revenue from contracts with customers	15,392,521	13,997,150	10%	60,733,952
Cost of sales	(14,098,757)	(13,714,016)	-3%	(55,677,311)

Gross profit	1,293,764	283,134	357%	5,056,641
	8.4%	2.0%		9.2%
Other operating income - net	57,685	47,256	22%	203,167
Distribution expenses	(158,148)	(147,529)	-7%	(579,776)
Administrative expenses	(697,051)	(674,792)	-3%	(2,589,737)
Net impairment gain/(loss) on financial assets	(114,275)	(90,197)	-27%	122,903

Results from operating activities	381,975	(582,128)	166%
Finance income	136,794	160,909	-15%
Finance costs								(245,063)		(279,904)	12%

Net finance income/(costs)						(108,269)	(118,995)		9%

Profit before tax	273,706	(701,123)	139%
				1.8%	-5.0%
Income tax	(115,405)	(151,893)	24%

Profit for the period	158,301	(853,016)	119%
				1.0%	-6.1%
Attributable to:

2,213,198

454,693

(1,095,512)

(640,819)

1,572,379

2.6%

(462,843)

1,109,536

5.1%

Equity holders of the parent			158,301	(853,016)	119%	1,109,536
Non-controlling interest			Nil	Nil	Nil		Nil
			158,301	(853,016)	119%		1,109,536
			1.0%	-6.1%		5.1%
Basic earnings per share (LKR)			0.22	(1.19)		1.55
PE	184.58	(25.54)	184.58	-25.54

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TEEJAY LANKA PLC

Statement Of Comprehensive Income

(All amounts in Sri Lanka Rupees Thousands)

		Group
		Quarter Ended			Year Ended
		30 June			31 March
	2024	2023	Variance	2024
	Unaudited	Unaudited			Audited
Profit for the period	158,301	(853,016)	119%	1,109,536
Comprehensive income

Actuarial gain/(loss) on defined benefit obligation								Nil		Nil		Nil
Deferred tax credit/(charge) attributable to remeasurement of								Nil		Nil		Nil
defined benefit obligation
Currency translation differences	555,859	(1,708,203)	133%

Total comprehensive income for the period	555,859	(1,708,203)	133%

Total comprehensive income for the period	714,160	(2,561,219)	128%
Attributable to:
Equity holders of the parent	714,160	(2,561,219)	128%
Non-controlling interest							Nil		Nil		Nil
				714,160	(2,561,219)	128%

(312,478)

94,446

(2,295,337)

(2,513,369)

(1,403,833)

(1,403,833) Nil

(1,403,833)

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TEEJAY LANKA PLC

Statement of Profit or Loss

(All amounts in Sri Lanka Rupees Thousands)

																	Company
															Quarter Ended				Year Ended
																30 June				31 March
							2024	2023	Variance	2024
													Unaudited	Unaudited					Audited
Revenue from contracts with customers	9,463,164	8,276,075	14%		38,578,691
Cost of sales	(8,603,249)	(7,525,802)	-14%	(33,258,507)

Gross profit	859,915	750,273	15%		5,320,184
							9.1%	9.1%			8.2%
Other operating income - net	27,271	34,808	-22%	103,277
Distribution expenses	(132,326)	(105,390)	-26%	(394,987)
Administrative expenses	(416,718)	(373,240)	-12%	(1,456,131)
Net impairment gain/(loss) on financial assets	2,130	(11,803)	118%	129,437

Results from operating activities	340,272	294,648	15%		3,701,780
Finance income	110,543	177,760	-38%	501,108
Finance costs														(57,535)			(93,924)	39%	(336,786)

Net finance income/(costs)												53,008	83,836		-37%	164,322

Profit before tax	393,280	378,484	4%		3,866,102
							4.2%	4.6%			10.0%
Income tax	(103,154)	(231,226)	55%		(1,106,910)

Profit for the period	290,126	147,258	97%		2,759,192
							3.1%	1.8%			7.2%
Basic earnings per share (LKR)	0.40	0.21				3.85

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TEEJAY LANKA PLC

Statement Of Comprehensive Income

(All amounts in Sri Lanka Rupees Thousands)

																					Company
																			Quarter Ended			Year Ended
																				30 June			31 March
							2024			2023		Variance	2024
																	Unaudited	Unaudited			Audited
Profit for the period	290,126	147,258		97%		2,759,192
Comprehensive income
Actuarial gain/(loss) on defined benefit obligation											Nil			Nil	Nil	(270,429)
Deferred tax credit/(charge) attributable to remeasurement of											Nil			Nil	Nil	81,129
defined benefit obligation
Currency translation differences	527,297	(1,537,423)	134%		(2,139,761)

Total other comprehensive income for the period	527,297	(1,537,423)	134%		(2,329,061)

Total comprehensive income for the period	817,423	(1,390,165)	159%		430,131
Attributable to:
Equity holders of the parent	817,423	(1,390,165)	159%		430,131
							817,423	(1,390,165)	159%		430,131

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TEEJAY LANKA PLC

Statement Of Financial Position

(All amounts in Sri Lanka Rupees Thousands)

		Group			Company
	As at 30 June	As at 31 March	As at 30 June	As at 31 March
	2024	2023	2024	2024	2023	2024
	Unaudited	Unaudited	Audited	Unaudited	Unaudited	Audited
ASSETS
Non - current assets
Property, plant & equipment	18,389,646	18,620,073	18,142,428	7,266,293	6,799,377	7,021,499
Capital work-in-progress	254,999	1,858,851	703,359	172,919	1,132,137	508,793
Intangible assets	565,229	136,874	606,388	412,380	103,059	442,191
Goodwill	100,090	100,136	98,268	Nil	Nil	Nil
Investment in Subsidiaries	Nil	Nil	Nil	5,221,076	5,223,504	5,126,027
Right-of-use assets	1,683,886	1,618,790	1,681,152	627,945	666,853	629,527
Deferred tax assets	2,354,626	1,792,142	2,239,540	Nil	Nil	Nil
Non-current receivables	638,520	Nil	625,842	1,285,713	Nil	1,324,794
	23,986,996	24,126,866	24,096,977	14,986,326	13,924,930	15,052,831
Current assets
Inventories	12,495,996	12,178,989	11,645,818	8,266,843	7,916,126	7,559,901
Trade and other receivables	10,539,026	9,221,631	9,773,644	9,323,341	8,548,163	9,489,475
Current Tax receivables	682,075	469,985	614,466	Nil	Nil	Nil
Other financial assets	2,780,992	3,155,711	1,668,451	2,337,937	2,747,209	1,180,819
Cash and cash equivalents	6,123,049	6,464,873	7,233,344	4,766,087	4,939,480	6,054,353
	32,621,138	31,491,189	30,935,723	24,694,208	24,150,978	24,284,548
Total assets	56,608,134	55,618,055	55,032,700	39,680,534	38,075,908	39,337,379
EQUITY AND LIABILITIES
Capital and reserves
Stated capital	4,582,871	4,442,234	4,442,234	4,582,871	4,442,234	4,442,234
Share option scheme	186,667	153,491	181,691	186,667	153,491	181,691
Exchange equalisation reserve	16,308,061	16,339,336	15,752,202	13,920,795	13,995,836	13,393,498
Retained earnings	9,371,245	8,547,072	9,754,037	10,185,134	8,551,022	10,436,101
	30,448,844	29,482,133	30,130,164	28,875,467	27,142,583	28,453,524
Non - current liabilities
Borrowings	5,264,013	5,903,103	4,139,942	Nil	Nil	Nil
Lease liabilities	1,262,125	1,265,470	1,229,391	444,483	452,362	437,363
Deferred tax liabilities	2,229,574	2,216,578	2,213,454	602,963	586,889	700,937
Retirement benefit obligations	939,979	561,315	875,378	548,760	233,370	522,388
	9,695,691	9,946,466	8,458,165	1,596,206	1,272,621	1,660,688
Current liabilities
Trade and other payables	12,829,731	11,525,486	10,866,322	7,410,761	6,423,965	5,901,919
Current tax liabilities	278,174	268,896	281,655	268,932	257,067	281,655
Lease liabilities	124,142	107,988	112,612	56,598	53,298	47,138
Borrowings	3,231,552	4,287,086	5,183,782	1,472,570	2,926,374	2,992,455
	16,463,599	16,189,456	16,444,371	9,208,861	9,660,704	9,223,167
Total liabilities	26,159,290	26,135,922	24,902,536	10,805,067	10,933,325	10,883,855
Total equity and liabilities	56,608,134	55,618,055	55,032,700	39,680,534	38,075,908	39,337,379
Net asset per share	42.20	41.13	42.04	40.02	37.87	39.70
PBV	0.96	-		-	-
	0

I certify that financial statements comply with the requirements of the Companies Act No. 07 of 2007.

sgd.

Renuja Selvanathan

Chief Financial Officer

sgd.

Pubudu De Silva

Chief Executive Officer

The Board of Directors is responsible for the preparation and presentation of these financial statements.

sgd.	sgd.
Ashroff Omar	Hasitha Premaratne
Director	Director
7-Aug-2024

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TEEJAY LANKA PLC

Statement Of Changes In Equity - Group

(All amounts in Sri Lanka Rupees Thousands)

																						Stated capital	Share option 0	Exchange	Retained			Total
																											scheme		equalisation	earnings
																															reserve
Balance as at 1 April 2023	4,442,234	153,491	18,047,539	9,400,088	32,043,352
Profit for the period										Nil			Nil					Nil	1,109,536	1,109,536
Other comprehensive income										Nil			Nil	(2,295,337)	(218,032)	(2,513,369)

Total comprehensive income										Nil			Nil	(2,295,337)	891,504	(1,403,833)

Final dividend paid - 2022/23																	Nil					Nil			Nil	(537,555)	(537,555)
Employee Share Option Scheme											Nil	28,200			Nil					Nil	28,200

Balance as at 31 March 2024	4,442,234	181,691	15,752,202	9,754,037	30,130,164
Balance as at 1 April 2024	4,442,234	181,691	15,752,202	9,754,037	30,130,164
Profit for the period										Nil			Nil					Nil	158,301	158,301
Comprehensive income										Nil			Nil	555,859						Nil	555,859

Total comprehensive income										Nil			Nil	555,859		158,301	714,160

Final Dividend - 2023/24																	Nil					Nil			Nil	(541,093)	(541,093)
Employee Share Option Scheme										Nil	4,976			Nil					Nil	4,976
Issue of shares under Employee Share Option Scheme	140,637					Nil	Nil	Nil	140,637

Balance as at 30 June 2024	4,582,871	186,667	16,308,061	9,371,245	30,448,844
Balance as at 1 April 2023	4,442,234	153,491	18,047,539	9,400,088	32,043,352
Profit for the period										Nil			Nil					Nil	(853,016)	(853,016)
Comprehensive income										Nil			Nil	(1,708,203)					Nil	(1,708,203)

Total comprehensive income										Nil			Nil	(1,708,203)	(853,016)	(2,561,219)

Balance as at 30 June 2023	4,442,234	153,491	16,339,336	8,547,072	29,482,133

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TEEJAY LANKA PLC

Statement Of Changes In Equity - Company (All amounts in Sri Lanka Rupees Thousands)

																					Stated capital	Share option	Exchange	Retained			Total
																										scheme		equalisation	earnings
																														reserve
Balance as at 1 April 2023	4,442,234	153,491	15,533,259	8,403,764	28,532,748
Profit for the period										Nil		Nil					Nil	2,759,192	2,759,192
Other comprehensive income										Nil		Nil	(2,139,761)	(189,300)	(2,329,061)

Total comprehensive income										Nil		Nil	(2,139,761)	2,569,892	430,131

Final dividend paid - 2022/23																Nil					Nil			Nil	(537,555)	(537,555)
Employee Share Option Scheme										Nil	28,200		Nil					Nil	28,200

Balance as at 31 March 2024	4,442,234	181,691	13,393,498	10,436,101	28,453,524
Balance as at 1 April 2024	4,442,234	181,691	13,393,498	10,436,101	28,453,524
Profit for the period										Nil		Nil					Nil	290,126	290,126
Other comprehensive income										Nil		Nil	527,297						Nil	527,297

Total comprehensive income										Nil		Nil	527,297		290,126	817,423

Final Dividend - 2023/24																Nil					Nil			Nil	(541,093)	(541,093)
Employee Share Option Scheme										Nil	4,976		Nil					Nil	4,976
Issue of shares under Employee Share Option Scheme	140,637					Nil	Nil	Nil	140,637

Balance as at 30 June 2024	4,582,871	186,667	13,920,795	10,185,134	28,875,467
Balance as at 1 April 2023	4,442,234	153,491	15,533,259	8,403,764	28,532,748
Profit for the period										Nil		Nil					Nil	147,258	147,258
Other comprehensive income										Nil		Nil	(1,537,423)					Nil	(1,537,423)

Total comprehensive income										Nil		Nil	(1,537,423)	147,258	(1,390,165)

Balance as at 30 June 2023	4,442,234	153,491	13,995,836	8,551,022	27,142,583

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TEEJAY LANKA PLC

Statement Of Cash Flows

(All amounts in Sri Lanka Rupees Thousands)

Group

Period ended 30 June

20242023

Unaudited Unaudited

Cash flows from operating activities

Company

Period ended 30 June

20242023

Unaudited Unaudited

Cash generated from / (Used in) operations	1,303,660	1,268,892
Finance income received	136,794	160,909
Finance cost paid	(226,050)	(259,819)
Retirement benefit obligations paid	(24,774)	(36,314)
Tax paid	(228,838)	(425,635)
Net cash generated/(used) from operating activities	960,792	708,033
Cash flows from investing activities
Additions to capital work - in - progress	(173,765)	(305,304)
Investment return from financial assets	(1,061,123)	(51,722)
Net cash used in investing activities	(1,234,888)	(357,026)
Cash flows from financing activities
Issue of shares under Employee Share Option Scheme	140,637	Nil
Proceeds from / (settlement of) borrowings	(1,239,172)	(1,728,265)
Principal elements of lease payments	Nil	(23,535)
Net cash generated from / (used in) financing activities	(1,098,535)	(1,751,801)

Net increase/(decrease) in cash and cash equivalents	(1,372,631)	(1,400,795)
Cash and cash equivalents at the beginning of the period	7,217,674	7,351,402
Cash and cash equivalents at the end of the period	5,845,043	5,950,607

1,505,443 1,442,751

110,543 177,760

(50,083) (85,878)

(14,901) (27,285)

(228,838) (425,635)

1,322,164 1,081,714

(92,158) (178,817)

(1,113,726) (41,231)

(1,205,884) (220,048)

140,637Nil

(1,549,942) (1,117,684)

Nil (23,535)

(1,409,305) (1,141,221)

(1,293,025) (279,555)

6,039,598 4,860,741

4,746,573 4,581,186

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