Sri Lanka’s Asiri hospital group earnings hit by higher tax rate
ECONOMYNEXT – Profits at Sri Lanka’s Asiri Hospital Holdings fell 19.4 percent from a year earlier to 177 million rupees in the March 2018 quarter, after the state more than doubled the income tax rate on healthcare services, interim accounts showed.
The hospital group reported earnings of 16 cents a share in the quarter, interim financial results filed with the Colombo Stock Exchange showed.
The stock was trading 30 cents higher at 25.90 rupees on Monday.
Asiri Hospital Holdings reported earnings of 1.53 rupees a share for the year to end-March 2018 with revenue growing 15.7 percent from a year earlier to 12 billion rupees.
Gross profits in the March 2018 quarter rose 9.6 percent from a year earlier to 1.4 billion rupees with revenue increasing 8.5 percent to 3 billion rupees and cost of sales growing at a slower 7.5 percent to 1.6 billion rupees.
The group’s income tax expenses increased 174 percent from a year earlier to 286.7 million rupees in the March quarter. This was due to income taxes on healthcare services increasing to 28 percent from 12 percent.
The hospital group’s profit before tax had increased 33.8 percent from a year earlier to 480.3 million rupees.
Administrative expenses rose 3.6 percent to 703 million rupees while selling and distribution costs rose 38 percent to 105.5 million rupees.
Net finance cost fell 13.8 percent to 175.7 million rupees. (COLOMBO, 04 June, 2018)