Sri Lanka tiles industry Sept quarter profits up, sales stagnant
ECONOMYNEXT – Two Sri Lankan tile manufacturers under Lanka Ceramics group controlled by Royal Ceramics have reported double-digit profit growth for the September 2015 quarter compared with a year ago despite falling or stagnant sales as costs fell.
Net profit of Lanka Tiles rose 27 percent to 275 million rupees in the quarter from a year ago, according to interim results filed with the stock exchange.
Gross sales fell 4.8 percent to 1.4 billion rupees with exports down by almost half to 45 million rupees while local sales also fell 2.2 percent to 1.37 billion rupees.
The accounts showed costs fell sharply. Lanka Tiles said earnings peer share for the September quarter rose to 5.19 rupees from 4.10 rupees a year ago.
For the six months ending September 2015, EPS rose 39 percent to 8.88 rupees.
Lanka Walltile said net profit rose 15 percent to 306 million rupees in the September 2015 quarter from a year ago.
Sales were stagnant but costs fell. EPS for the quarter rose to 5.60 rupees from 4.88 the year before.
For the six months ending September 2015, net profit rose 20 percent to 482 million rupees with EPS rising to 8.89 rupees from 7.30 rupees.
Sri Lankan manufacturers are benefitting from lower energy and finance costs with lower interest rates and inflation in the island.
Lanka Ceramics, which controls the two tile firms, said September 2015 quarter net profit rose almost 21 percent to 205 million rupees from a year ago. EPS rose to 6.83 rupees from 5.68 rupees.
Quarter revenue was stagnant at 3.77 billion rupees but costs fell.
In the six months ending September EPS of Lanka Ceramics rose to 11.10 rupees from 8.53 rupees the year before.
Profits from its tile units rose by half and that from its packaging materials and aluminium subsidiaries products grew while plantations suffered a loss. (Colombo/November 04 2015)