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JAT profit reaches record high

31 Jan 2022

JAT Holdings PLC has delivered a rise in group profit after tax (PAT) of 232%, during the third quarter (Q3) of FY 2021/22, despite subdued market conditions while recording the highest-ever PAT.  It is against the same period in the year prior, to Rs. 717 million for the quarter, while PAT for the trailing 12-months (TTM) stood at Rs. 1,102 million. Export revenue share also rose to 22% of total revenue, against 9% achieved during the year prior. Discussing the financial performance of the company, JAT Holdings PLC Director and Chief Executive Officer (CEO) Nishal Ferdinando said: “It is with great pleasure that we present investors with the solid results we’ve achieved over the last quarter, just six months since our initial public offering (IPO). These metrics were achieved amidst a subdued market environment and other challenges, volatile exchange rates, and a scarcity of materials in the global market. However, we adapted to the market conditions and remained agile, maintaining our gross profit margins. We also leveraged on our strong supplier relations and continuous improvements to our production processes through the implementation of lean and six sigma principles to maintain our gross profit targets.” The nine months under review also witnessed revenues rise 72%, while gross profit margins of the company remained steady at over 30%. Investors will also be pleased to note that EPS (of trailing 12 months) stood at Rs. 2.16. This resilient financial performance comes as the company begins Q4, which has demonstrated to be the best quarter for JAT Holdings and the total coatings industry and accounts for as much as 45% of PAT historically due to seasonal factors. Commenting on the company’s immediate future plans, JAT Holdings PLC Founder and Managing Director (MD) Aelian Gunawardene added: “At this rate, we’re on track to meet our Rs. 1.2 billion PAT target for the current financial year. As a result of our strong financial performance, we have also been able to secure stocks of raw materials and other items for at least the next five months, which gives us flexibility amidst the current challenges facing imports. Furthermore, we are very enthusiastic about Q4 as we know it to historically be the most profitable quarter for us due to seasonality. Thus, backed by the resilient performance we have delivered over a challenging Q3, investors can look forward to an even more robust and rewarding performance during Q4. We expect to end FY 2021/22 having met all targets and exceeding expectations in every way. Furthermore, our R&D plant, which is scheduled to be fully functional by Q2 of FY23, will help to further boost our gross profit margins, enabling us to deliver exceptional value to our investors well into the future.” Resilient performance was also recorded across all of JAT Holdings business sectors. The White by JAT product range recorded sales 62% above budget for the first nine months of FY 2021/22, while sales in the brush and wood coatings segments increased by 57% and 33%, respectively, against the same period in the year prior. JAT Holdings’ Bangladesh operations also witnessed a 379% increase in revenue, which will be further boosted as a result of manufacturing commencing in Q4 of FY22 which is ahead of schedule. The company has also secured a pipeline of projects worth in excess of Rs. 1 billion, through luxury kitchen and wardrobe projects for premier developments such as Prime Grand Residencies and 606 The Address


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