Sri Lankan company profits grew slowly in June quarter
ECONOMYNEXT – Profits of companies listed on Sri Lanka’s stock exchange grew 8.2 percent in the June 2017 quarter from a year ago, with higher commodity and energy prices and floods affecting consumer spending, a brokerage said.
Total June quarter earnings of firms on the Colombo Stock Exchange of 54.9 billion rupees were dominated by a “healthy performance” in the banking sector, up 23 percent from a year ago, with the food, beverage and tobacco sector up 54 percent, First Capital Equities said.
The capital goods sector, whose profits rose 23 percent, insurance firms whose earnings grew 36 percent, and the health care equipment and services sector where profits increased 22 percent from the year before also contributed to earnings growth in the quarter, they said in a report.
“However, earnings growth was partially offset by negative earnings in the consumer services sector (-707% YoY), energy sector (-129% YoY) and narrowed earnings in the materials sector (-30%),” it said.
Overall slow growth in the economy, increased commodity and energy prices and continued impact of floods also influenced consumer spending, First Capital Equities said.
June 2017 quarter profit growth was slightly higher than that of the March quarter (7.1 percent), but lower than earnings growth of 10.5 percent in the September quarter and 26.7 percent in the December 2016 quarter.
(COLOMBO, Sept 01, 2017)