Sri Lankan gloves maker December net up sharply
EconomyNext – Sri Lankan rubber gloves maker Dipped Products said December 2014 quarter net profit shot up 242 percent to 326 million rupees from a year ago with production at a relocated factory reaching normal levels.
The firm, a unit of the Hayleys conglomerate, said in a stock exchange filing that quarterly earnings per share went up to 5.45 rupees from 1.59 rupees.
Sales rose 13 percent to 6.2 billion rupees during the period, with finance costs up 24 percent to 94 million rupees.
Dipped Products Ltd. makes industrial, general purpose and medical rubber gloves at factories in Sri Lanka and Thailand and also operates tea and rubber plantations in the island.
In the nine months ending 31 December 2014, net profit was up 47 percent to 852 million rupees with sales up 22 percent to 21.3 billion rupees. EPS went up to 14.24 rupees from 9.67 rupees the previous year.
DPL Managing Director Mahesha Ranasoma said the firm was able to reach normal production levels at DPL Premier Gloves.
The unit was set up in January 2014 at the Biyagama Free Trade Zone as DPL was forced to move its plant from Rathupaswala after allegations that factory effluents polluted ground water.
Ranasoma said resumption of normal production at the new plant "has allowed us to reduce order lead times significantly, thereby improving delivery efficiency to our customers.”
DPL surpassed one billion rupees in pre-tax profits in the December quarter.
During the period one of DPL’s production facilities installed a reverse osmosis plant and has now begun using water from the plant within the factory, a statement said.
The group is now exploring the opportunity to reuse and save water across all DPL production locations.