Singer Sri Lanka in the red on forex losses, higher interest costs
ECONOMYNEXT – Electronics and home appliances retailer Singer Sri Lanka Plc reported a loss of 144.1 million rupees in the September 2018 quarter, against a profit of 100.1 million rupees a year earlier, on foreign exchange losses and rising interest costs.
The company, a unit of listed Hayleys Plc, made a loss of 38 cents a share in the quarter, interim accounts filed with the Colombo Stock Exchange showed.
In the six months to end-September, earnings were 73 cents a share on a profit of 274.6 million rupees, down 43.4 percent from a year ago.
The stock closed 60 cents lower at 32 rupees on Monday.
In the September quarter, revenue had increased 13 percent from a year earlier to 13.5 billion rupees while cost of sales grew 14 percent to 9.4 billion rupees, resulting in gross profits growing 10 percent to 3.7 billion rupees.
Finance cost increased 20 percent to 697 million rupees. Long term borrowings grew 31 percent from a year earlier to 7.7 billion rupees at end September and short term loans grew 9 percent in the period to 16.9 billion rupees.
Singer Sri Lanka reported a foreign exchange loss of 187 million rupees in the quarter, compared to a gain of 7.2 million rupees a year earlier as the rupee came under pressure due to an indefensible soft peg against the US dollar.
Selling and administrative expenses grew 11 percent to 2.9 billion rupees.
Inventories were 12.7 billion rupees at end September 2018, up 24 percent from a year earlier.
Trade receivables grew 23.5 percent in the quarter to 21 billion rupees.
Trade payables grew 94 percent to 10.1 billion rupees. (COLOMBO, 12 November 2018)