Sri Lanka Telecom Sept net down 70-pct on forex losses
ECONOMYNEXT – Sri Lanka Telecom said September 2015 quarter net profit fell 70 percent to 630 million rupees from a year ago largely owing to foreign exchange losses from the depreciation of the rupee.
September quarter sales grew four percent to 17.3 billion rupees, interim results filed with the stock exchange showed.
SLT made a foreign exchange loss of 1.4 billion rupees during the September 2015 quarter.
Basic earnings per share for the quarter fell to 35 cents from 1.15 rupees a year ago.
EPS for the nine months to 30 September 2015 fell 19 percent to 2.28 rupees while sales rose six percent to 50.8 billion rupees from the year before.
A company statement said profits fell largely because of “foreign currency translation losses relating to foreign currency denominated borrowings due to the sudden depreciation of the rupee against the US dollar.”
It said most of the borrowings of the group are dollar denominated to take advantage of low interest costs.
“Since the repayments are going through the internally generated foreign denominated revenues, provisions for translation losses are generally not impacting the group cash-flows,” SLT said. (Colombo/November 14 2015)