COLOMBO, Nov 14, 2014 (EconomyNext) – Colombo Dockyard said net profit fell 81 percent to 36.3 million rupees in the September 2014 quarter from a year ago as delays in construction of passenger vessels hit ship building and repair revenue.
Earnings per share for the quarter were 51 cents compared with 2.68 rupees the year before, the yard said in a stock exchange filing.
Revenue fell 24 percent to 3.2 billion rupees in the period while finance income rose 31 percent to 84 million rupees.
The yard, a unit of Japan’s Onomichi Dockyard Company, said it delivered the first of a pair of passenger ferries to India, each capable of carrying 400 people and 250 tonnes of cargo.
"This is the single largest shipbuilding project undertaken by the company as well as by Sri Lanka in terms of capacity, contract value and duration," a statement said.
EPS for the nine months to September 2014 fell to 1.61 rupees from 8.97 rupees the year before with revenue down 11 percent to 10.6 billion rupees.
The yard said construction delays which hit ship building and repair volumes and margins were temporary and profitability was expected to recover.