JAT records highest-ever PAT amidst export revenue growth of 317%

• Group PAT up by 232% to Rs. 717 m
• TTM PAT Rs. 1,102 m
• Total revenue up by 72%
• Company GP maintained above 30%
• Exports revenue increased from 9% to 22% of total revenue 

JAT Holdings Founder and MD Aelian Gunawardene

JAT Holdings CEO and Executive Director Nishal Ferdinando

Multinational conglomerate and Sri Lanka’s and Bangladesh’s market leader in wood coatings, JAT Holdings PLC has delivered impressive results during the third quarter of FY 2021/22, despite subdued market conditions. Group Profit After Tax (PAT) rose 232%, 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. 

The nine months under review also witnessed revenues rise 72%, while gross profit margins of the company remained steady at over 30%. Export revenue share also rose to 22% of total revenue, against 9% achieved during the year prior. 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. 

Discussing the financial performance of the company, Director/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 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.” 

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. 

Commenting on the company’s immediate future plans, Founder/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.”

The company is also looking towards backward vertical integration to insulate its supply and value chains from external shocks and is looking at embarking on several ambitious projects and taking advantage of our strong liquidity.

Alongside delivering phenomenal financial performance, JAT Holdings is also devoting significant resources towards supporting wood craftsmanship in Sri Lanka through the JAT ‘Pinthaaroo-Shilpee Abhiman’ program. This initiative is an extension of JAT’s longstanding ‘Sayerlack Sathkaraya’ CSR program and is being conducted in partnership with the National Apprentice Industrial Training Authority (NAITA), under the auspices of the Ministry of Skills Development, Vocational Education, Research & Innovation.

Since its founding in 1993, JAT Holdings has established itself as a market leader in Sri Lanka for wood coatings and as one of the country’s most promising conglomerates. This is further attested to by accolades such as being ranked amongst Sri Lanka’s Top 100 Most Respected Companies by LMD for four years consecutively and also ranking among the Top 20 Conglomerate Brands by Brand Finance. Up until its recent IPO in July 2021, JAT Holdings was the only privately held company in Sri Lanka to receive the coveted Moody’s ICRA ‘A+ Stable’ rating for five years consecutively.