Sri Lanka Access Engineering June net down 39-pct
ECONOMYNEXT – Profits at Sri Lanka’s Access Engineering fell 39 percent from a year earlier to 364.9 million rupees in the June 2018 quarter as falling margins from construction offset improving earnings from condominium sales and rent, interim accounts showed.
Earnings were 36 cents a share in the quarter, interim accounts filed with the Colombo Stock Exchange showed.
The share was trading 30 cents lower on Wednesday at 15.30 rupees.
Revenue grew 10 percent from a year earlier to 5.8 billion rupees, and cost of sales grew a faster 18 percent to 4.8 billion rupees dragging gross profits down by 16 percent to 990 million rupees.
The construction segment reported revenue growth of 5 percent from a year earlier to 3 billion rupees, but profits fell a sharp 82 percent to 86 million rupees.
Real estate saw revenue increase 312 percent to 196 million rupees, with profits increasing 179 percent to 183 million rupees.
This segment which comprises rents from high-rise buildings owned by the group and apartment sales made the highest contribution to group earnings.
Construction material sales grew 89 percent to 894 million rupees and profits increased 106 percent to 72 million rupees.
Automobile sales increased 11 percent to 2 billion rupees but profits fell 68 percent to 41.2 million rupees.
Group administrative expenses rose 18 percent to 432.7 million rupees and net finance cost rose 193 percent to 152 million rupees.
The company said it was disposing three subsidiaries for 1.54 billion rupees with the sales proceeds expected in equal instalments over a 12-month period beginning April 2018.
The company’s banks have also issued guarantees worth 7.9 billion rupees at end June 2018. (COLOMBO, 15 August 2018)