ECONOMYNEXT – Sri Lanka’s Hatton Plantations, which debuted on the Colombo Stock Exchange last Friday, made a net profit of Rs94 million in the December 2017 quarter, its first as a separate firm spun off from Watawala Plantations.
The tea business of Watawala Plantations had made a net profit of Rs194 million a year ago in the December 2016 quarter.
According to Hatton Plantations interim accounts filed with the stock exchange, sales were Rs986 million with gross profit at Rs213 million. Earnings per share were 40 cents for the quarter.
Hatton Plantations is the segregated upcountry tea businesses of Watawala Plantations and was listed on the CSE by way of an introduction at 7.80 rupees per share.
The stock was last traded at Rs8.90 Friday.
Hatton Plantations, with 17 tea estates and 11 processing factories, is part of the Sunshine Holdings group, which includes Watawala Plantations, whose tea business it was until the September 2017 quarter.
Vish Govindasamy, Managing Director of Hatton Plantations, said the December 2017 quarter profit was “mainly attributable to the quality focus, manufacturing strategy, cost reduction measures and bullish market conditions.”
Net assets per share increased to Rs8.24 from the share issue price of Rs7.62, he said.
“As predicted, the ‘Arrangement’ that segregated the upcountry tea business has delivered positive results for the period ended December 31, 2017 would continue in 4QFY18,” Govindasamy, who is also managing director of Watawala Plantations, said.
(COLOMBO, February 09, 2018)