Teejay, based in Sri Lanka, is a circular knitter has seen its Q2 revenue grow 25 per cent. Profit before tax was up 11 per cent and net profit increased 15 per cent over the corresponding three months of the previous year.

One of the region’s largest textile manufacturers, Teejay supplies fabrics to some of the top international brands across the world. The company is part owned by Sri Lanka’s largest apparel exporter, Brandix Lanka, which has a 33 per cent stake and Pacific Textiles of Hong Kong, which owns 28 per cent of the company.

This was the fourth consecutive quarter of revenue and net profit growth for the company in the face of stiff challenges, and was made possible by expanded capacity and a strong order book arising from the GSP facilities that it enjoys.

Although margins were impacted by raw material and utility cost increases in the second quarter, Teejay was able to improve its gross margin to 11.3 per cent from 10.2 per cent in the corresponding quarter as a result of better loading and an improved mix, with its USA and EU business units increasing sales volumes. The plan is to expand in India in the second half of the financial year.