An Echelon Media Company
Wednesday February 1st, 2023

Sri Lanka’s Expolanka Holdings profits soar amid pandemic disruptions

ECONOMYNEXT – Profits at Sri Lanka’s Expolanka Holdings Plc soared to 4.5 billion rupees in the December 2020 quarter, up from 15 fold from 302 million rupees a year earlier, amid elevated freight rates in a Coronavirus pandemic.

The group reported earnings 2.33 rupees per share. In the nine months to December the group reported earnings of 5.54 rupees per share on total earnings of 10.8 billion rupees.

The firm posted similar results in the September quarter on revenues of 49 billion rupees.

Gross profits almost doubled to 9.7 billion rupees from 4.9 billion rupees in the quarter, with revenues up 108 percent to 27 billion rupees and cost of sales up 110 percent to 22.9 billion rupees.

“The above performance was driven by a multitude of factors, led by the gradual return of regular business, supply of personal protective equipment (PPE), improved yields and unified collaboratie efforts across the entire organization,” Chairman Hanif Yusoof said.

“An unrelenting sales focus enabled the sector to maintain a steady volume, which was further buoyed by the return of regular business.

“The Airfreight market remained disrupted with elevated freight rates delivering strong revenue and contributing towards higher yields.

“The Far East markets performed exceptionally, whilst the Indian sub-continent operations were robust.”

There was both growth in and yield gains in air freight, he said.

North America trade lane was the largest contributor while Europe and Intra Asia also contributed.

“Global supply chains remained interrupted, leading to the continuation of dynamic market conditions in the short term,” he said.

“Your company is mindful that with steady return of capacity, markets would stabilize which may result in measured yields going forward.”

The company was re-structuring is leisure business and operating on a lean model while preparing for the airport to open and travel restrictions to be removed. (Colombo/Jan29/2021)

Leave a Comment

Your email address will not be published. Required fields are marked *

Leave a Comment

Leave a Comment

Cancel reply

Your email address will not be published. Required fields are marked *

Sri Lanka shares edge up at close

ECONOMYNEXT- Sri Lanka’s shares edged up on Wednesday pushed as investors bought in to beaten down shares following the previous session’s drop, market analyst said.“

At this price level what we are seeing is a lot of confidence from the investors to collect when the prices drop. So, the market is not falling sharply,” a market analyst said.

Market had also seen buying in Expolanka shares on speculation that the parent company of SG Holdings was buying back into the shares.

All Share Price Index (ASPI) edged up by 0.96 percent or 84.96 points to 8,950.01.

The most liquid index S&P SL20 gained 1.27 percent or 35.02 points to 2,799.53.

Banking and Insurance counters had seen interest on the back of positive sentiments from the IMF.

The central bank has said it could cut interest rates in future when the the country sees fall in inflation, which has already started decelerating.

The market saw a turnover of 1.5 billion rupees today,lower than the month’s daily average of 1.8 billion rupees and nearly half of 2022 average turnover of 2.9 billion rupees.

The bourse saw a flow of net foreign inflow of 45 million rupees extending the net offshore buying to 1.9 billion so far this year.

Top gainers of the day were Commercial Bank, Expolanka, and Ceylinco Insurance. (Colombo/Feb01/2023)






Continue Reading

Sri Lanka bond yields down at close

ECONOMYNEXT – Sri Lanka’s bond yields were down at close following a bond auction on Wednesday, dealers said while a guidance peg for interbank transactions remained unchanged.

“The rates were steady at the auction,” a dealer said.

“This can be a signal to the market saying the rates will go down in the future.”

A bond maturing on 01.07.2025 closed at 32.40/60 percent, down from yesterday’s 32.60/85 percent.

A bond maturing on 01.05.2027 closed at 29.10/35 marginally down from yesterday’s 29.20/75 percent.

The Central Bank’s guidance peg for interbank US dollar transactions remained unchanged at 362.14 rupees against the US dollar.

Commercial banks offered dollars for telegraphic transfers at 371.38 rupees on Friday, data showed. (Colombo/Feb 01/2022)

Continue Reading

Sri Lanka bill auction hits pothole after 2025 bond spike

ECONOMYNEXT – Sri Lanka sold only 45 billion rupees in Treasury bills at Wednesday’s auction after offering 120 billion rupees, data from the state debt office showed, amid market confusion over a spike in a two year bond at an earlier action.

30.1 billion rupees of 3-month bills were sold at 29.91 percent, unchanged from a week earlier after offering 60 billion rupees for auction.

5.1 billion rupees of 6-month bills were sold at 28.72 percent, flat after offering 30 billion.

10.3 billion rupees of 12-month bills were sold at 27.72 percent after offering 30 billion.

Phase II subscriptions have been opened.

The market was foxed after the 2025 bonds were accepted at sharply higher yield than market on January 30, dealer said.

There was further confusion as the there was an outright purchase of 2025 at around 29 percent earlier in January.

Some investors speculated that the authorities were trying to drive more buyers towards short end bonds as bill volumes were getting larger. (Colombo/Feb01/2023)

Continue Reading