Sri Lankaâ€™s Royal Ceramics March net up 11-pct to Rs890mn
ECONOMYNEXT – Group net profit of Sri Lanka’s dominant tile maker Royal Ceramics Lanka (RCL) rose 11.3% to Rs890 million in the March 2017 quarter from a year ago driven by growth tiles and sanitaryware and strong growth in aluminium business.
Quarterly earnings per share rose to Rs8.03 from Rs7.21 the year before with sales at Rs7.8 billion, according to interim accounts filed with the stock exchange.
Annual EPS were Rs29.16 with net profit up 10% to Rs3.2 billion and sales up 8% to Rs29.3 billion.
Bartleet Religare Stockbrokers said in a research note that RCL’s March quarter EPS of LKR 8.03 was 8.9% lower that its forecast owing to lower than expected contribution from tiles and associated items
It noted that RCL’s bottom line growth was aided by saving on cost of goods sold, distributions expenses and income tax which fell 40.3% from a year ago.
The group’s aluminium business continued to be “a sturdy top and bottom-line contributor”, although aluminium prices are on the rise since late last year, Bartleet Religare Stockbrokers said.
RCL’s subsidiaries Lanka Tile and Lanka Walltile have been successful in curtailing cost for the last two years, partly due to the reduction in gas prices.
(COLOMBO, May 29, 2017)