Sri Lankaâ€™s Bogala Graphite gains on high value products, rupee weakness
ECONOMYNEXT – Sri Lankan graphite miner Bogala Graphite said its return to profit in 2018 was helped by more sales of high value products and the depreciation of the rupee against other trading currencies like the dollar.
The firm, controlled by Germany’s Graphit Kropfmuhl Gmbh, made a profit after tax of 152.2 million rupees in 2018 compared to a loss of19.7 million rupees in 2017.
Chairman Vijaya Malalasekara said the company’s performance was supported mainly by the high-value sales coupled with the sharp devaluation of the currency.
“The product mix with higher margins for graphite contributed to comparatively better margins, whilst the lubricants business sustained 22 percent contribution to the overall revenue of the company,” he told shareholders in the firm’s annual report.
Chief Executive Amila Jayasinghe said the downsizing and restructuring of the firm also proved effective, “bringing smooth and efficient improvements to operations, resulting in greater productivity.”
Jayasinghe said revenue from supply of specialised solutions to the carbon brush industry and the friction industry grew by 49 percent and the revenue generated from traditional grades was reduced by 36 percent.
Another significant milestone achieved during the year was obtaining a mining license valid for 10 years, he said.
Up until 2018, Bogaa Graphite was required to renew the mining license every year.
(COLOMBO, March 18, 2019-SB)