Sri Lanka’s Lanka Walltiles group June quarter profit down 72-pct
ECONOMYNEXT – Profit at Sri Lanka’s Lanka Walltiles group fell 72% to 47 million rupees in the June 2018 quarter from a year ago, interim financial results filed with the stock exchange showed.
The group reported earnings of 87 cents per share in the quarter, down from 3.12 rupees a year ago. The stock closed unchanged at 79 rupees Tuesday.
The tile manufacturing group, which includes Lanka Tiles, benefits from high import tariffs on tiles which keep construction costs artificially high but still faces stiff competition from cheap imported tiles.
Lanka Walltiles June 2018 sales rose 5.3% to 3.8 billion rupees, cost of sales fell 12% to 2.95 billion rupees, contracting gross profits 12.7% to 853 million rupees, the accounts showed.
Profits from the group’s tile business fell 38%, earnings from packing materials were sharply lower while its plantations and aluminium products businesses made losses.
Group subsidiaries also include Vallibel Plantation Management Limited, Horana Plantations PLC, Uni-Dil Packaging Ltd, Uni-Dil Packaging Solutions Ltd, Swisstek (Ceylon) PLC, and Swisstek Aluminium Ltd.
Profits at subsidiary Lanka Tiles fell 43% to 84 million rupees in the June 2018 quarter from a year ago, interim accounts showed.
Earnings per share were 1.59 rupees. Lanka Tiles share last traded at 91.60 rupees.
Lanka Tiles sales rose 13% to 1.4 billion rupees in the June quarter from the previous year with local sales up by 13% to 1.3 billion rupees and exports up 12% to 64 million rupees.
(COLOMBO, 15 August, 2018)