Knit fabric experts, Textured Jersey Lanka (TJL) started the new financial year posting an impressive net profit of Rs. 240 million for the quarter ended 30th June 2013 (1Q FY2013-14), representing a strong 40 per cent year-on-year growth. The good results were due to the positive impact of the higher sales volumes and improved gross margins, flowed down to the operating profit level, resulting in an operating profit margin of 8 per cent (Rs. 228 million) for 1Q FY2013-14 compared to 6.3 per cent during the same period of the previous year.
According to Wing Tak Bill Lam, Chairman of TJL, the continued interest from TJL’s main customers – Victoria’s Secret, Marks & Spencer, Intimissimi and Decathlon – combined with the growth potential of emerging customers, makes TJL’s management confident of strong demand for the next period as well. The revenue contribution from the top three customers Victoria’s Secret, Marks & Spencer and Intimissimi are 23 per cent, 29 per cent and 31 per cent, respectively. On strategic initiatives, Wing Tak Bill Lam stated that the construction of TJL’s multi-fuel boiler plant was progressing according to plan, which will reduce TJL’s energy costs substantially when commissioned.
Currently, TJL has capacity to knit, dye and finish 2.5 million metres of fabric per month at its facilities in Avissawella in Sri Lanka. The company imports yarns from Indonesia, Thailand, Austria, China and India. During the manufacturing process, 100 per cent of the fabric is tested at the greige stage as well as the finishing stage and both roll to roll and batch to batch inspections are performed to ensure the quality of every metre fabric produced. The company has knitting machines from Orizio, Myer & Cie, Terrot, Santec and Pai Lung circular weft knitted machines, as well as Kauo Heng flatbed knitting machines which are capable of delivering the finest fabric as per specification. Both online inspection and 100 per cent quality inspection are used to make sure the knitted products are free from defects. 100 per cent inspection refers to top-to-bottom inspection of every fabric roll in every batch. Meanwhile, production planning is managed via the Fast React planning tool designed specifically for the industry.
