JAT Holdings PLC has reported impressive financial results for the first quarter of FY25, with significant growth in both revenue and profit. The company saw a 3% increase in revenues, reaching Rs. 2.2 billion, primarily driven by robust sales in the wood coatings and paint brushes segments. The Profit After Tax (PAT) surged by an impressive 77% year-on-year, rising to Rs. 124 million from Rs. 70 million in the same quarter of the previous year.
This strong performance was supported by increased efficiencies from JAT’s new acrylic binder and alkyd resin plants, which became operational earlier in 2024. These developments are expected to further boost growth and profitability in the upcoming quarters as the company now produces essential materials for wood coatings and wall paint emulsions in-house.
The quarter also marked significant strategic milestones for JAT, including the inaugural shipment of wood coatings to Australia and the opening of SEAFORM showrooms—representing a German luxury brand of vanities and kitchens—in both Australia and Bangladesh. JAT also recorded notable growth across various product categories, with project sales up by 41%, wood coatings including Sayerlack up by 15%, and paint brushes growing by 47%. The company was also recognized at the Green Industry Awards 2024 with a Silver Award for “Sound Chemical Management,” highlighting its commitment to sustainability.
Despite challenges such as adverse weather conditions in Sri Lanka and exchange rate volatility in the Bangladeshi Taka, JAT’s export volumes remained steady. While gross profits grew by 5%, operating profits contracted by 27% due to rising overheads linked to expansion in Bangladesh. However, profit before tax increased by 37% year-on-year, benefiting from operational efficiencies and favorable movements in the Sri Lankan Rupee exchange rate.
CEO Nishal Ferdinando expressed pride in the company’s resilience and ability to maintain growth despite challenging conditions. Founder and Managing Director Aelian Gunawardene emphasized the importance of strategic decision-making and the benefits of the company’s investments in marketing and customer loyalty programs, which have helped sustain and even grow sales in difficult market conditions. JAT Holdings remains committed to its growth strategy, customer satisfaction, and sustainable manufacturing practices.