Sri Lanka’s Kelani Tyres profits up 47-pct as costs fall
COLOMBO (EconomyNext) – Profits at Kelani Tyres Plc, a Sri Lanka based tyre maker which has a joint venture with India’s CEAT s rose 37 percent to 197 million rupees in the December 2014 quarter from a year earlier, interim account showed.
The firm reported earnings of 2.46 rupees per share. For the nine months to December it reported earnings of 6.85 rupees per share on total profits of 550 million rupees. The stock last traded at 82.20 rupees.
The joint venture firm’s sales in the 9-months to December were 12,499 tonnes of tyres down from 12,201 tonnes a year earlier.
Total sales fell 1.9 percent to 7,325 million rupees in the 9-months from a year earlier, while export sales fell 1 percent to 2.04 billion rupees. But costs fell at a faster 3.7 percent.
Finance costs fell to 2 million rupees from 56 million a year earlier.
Rubber prices has also fallen in recent months. The firm benefits from tariff protection, which it has called for and received during the Rajapaksa regime, at the cost of the mobility of ordinary citizens.