Singer Sri Lanka see demand for consumer durables, profits up
COLOMBO (EconomyNext) – Singer (Sri Lanka) Plc, a consumer durables firm said profits almost doubled in the March 2015 quarter amid continued growth in demand for products which began in the last quarter of 2015.
Group profits rose 95 percent to 253 million rupees in the quarter, giving earnings of 2.03 rupees per share.
Revenues rose 28 percent to 8.5 billion rupees in the March 2015 quarter and cost of sales rose at a faster 35 percent to 5.7 billion rupees. Direct interest costs fell to 148 million rupees from 185 million rupees.
Gross profits rose 18 percent to 2.7 billion rupees.
"We witnessed an improvement in the overall business environment in the 4th quarter of last
year and this trend continued and improved further in the current quarter," Group Chief Executive Officer Asoka Pieris told shareholders.
Singer Sri Lanka was one of the firms that was hit when a bubble fired mostly by credit financed energy subsidies collapsed in a balance of payments crisis in 2012, where a steep currency depreciation also hit real incomes of people.
There have been warnings that another unsustainable bubble is being fired by low interest rates and state consumption spending, financed with domestic credit, unless policy is tightened soon.
Meanwhile Singer said its Digital Media and Communications segment grew 88 percent, driving revenues.
The agriculture segment grew 44 percent, sewing products by 33 percent, Kitchen related products by 33 percent, white goods 16 percent, electronics by 16 percent and furniture by 16 percent.