TJL reported a 20% YoY decline in PAT to LKR 756Mn for 2Q FY25, primarily due to higher operating expenses and net finance costs of LKR 180.5Mn, compared to a net finance income of LKR 7Mn previously. This shift was mainly driven by lower deposit rates and forex losses. GP margin saw a slight decline to 11% from 12% (partly driven by efforts last year to address longstanding inventory issues) previously, impacted by higher cost of sales (+13% YoY), albeit revenue increased 11% YoY to LKR 17.3bn supported by volume growth. Due to higher promotional expenses, EBIT margins decreased to 6.9% from 7.8% previously. The strengthened order book has aided valuations, we maintain our BUY recommendation with a TP of LKR 53.90.