Lanka Tiles December quarter profit stagnant
EconomyNext – Lanka Tiles, a Sri Lankan floor tile manufacturer, said December quarter net profit was virtually stagnant at 195 million rupees compared with the year before as it faced competition from cheap imports.
Total sales for the quarter ending 31 December 2014 rose 8.2 percent to 1.8 billion rupees with export sales falling while local sales rose.
Earnings per share for the quarter fell to 3.68 rupees from 3.71 rupees the year before, a stock exchange filing said.
Costs rose sharply while net finance costs fell along with other operating income.
For the nine months ending December 2014, Lanka Tiles said net profit rose 18 percent to 534 million rupees while sales grew six percent to 4.4 billion rupees. EPS for the nine months rose to 10.06 rupees from 8.53 rupees a year ago.
Local tile manufacturer like Lanka Tiles, now controlled by the Royal Ceramics group, have been hit by cheap imports, according to Bartleet Religare Securities.
It said in a report in December that Lanka Tiles was trying to increase export growth although this would take time to record significant gains.
Local sales, which account for about 94 percent of revenue, fell in the June 2014 quarter too.
"Cheaper imports secured a higher market share of 54 percent which was aided by a reduction in import tariff from 30 percent to 25 percent in the 2014 national budget," BRS said.