Sri Lanka’s Royal Ceramics Sep net down 35-pct on rising costs
ECONOMYNEXT – Profits at Sri Lanka’s listed Royal Ceramics fell 35 percent to 440.5 million rupees in the September 2018 quarter on rising interest expenses and higher production and distribution costs, interim accounts showed.
Earnings were 3.98 rupees a share in the quarter. For the six months to end September 2018, earnings were 7.12 rupees a share on a profit of 789.2 million rupees, down 34 percent from a year earlier, accounts filed with the Colombo Stock Exchange showed.
Royal Ceramics, a unit of listed Vallibel One Plc, was trading 2 rupees lower at 75 rupees.
In the quarter, revenue grew 10 percent from a year earlier to 8.3 billion rupees while cost of sales grew a faster 26 percent to 5 billion rupees which contracted gross profits by 13 percent to 2.4 billion rupees.
Distribution costs rose 26 percent to 1.1 billion rupees and administrative expenses rose 24 percent to 471 million rupees.
Net finance cost increased 52 percent to 463 million rupees.
Borrowings had increased 21 percent from six months to earlier to 18.3 billion rupees at end September.
Royal Ceramics has two listed subsidiaries, Lanka Ceramics Plc and Lanka Walltiles Plc.
Profits at Lanka Walltiles Plc fell 80 percent from a year earlier to 82 million rupees in the September quarter.
Earnings per share was recorded at 1.58 rupees in the quarter. In the six months to end September earnings were 2.45 rupees a share on a profit of 125.2 million rupees, down 75 percent from a year earlier, interim accounts filed with the Colombo Stock Exchange showed.
Lanka Walltiles was trading 2.90 rupees lower at 72 rupees.
In the quarter, revenue grew 11 percent to 4.8 billion rupees but cost of sales grew a faster 29 percent to 3.8 billion rupees, leading to a 26 percent decline in gross profits to 1 billion rupees.
Distribution expenses rose 27 percent to 491 million rupees, administrative costs rose 27 percent to 293 million rupees and finance costs soared 116 percent to 192 million rupees.
Profits at Lanka Ceramic fell 91 percent from a year earlier to 11.8 million rupees in the September quarter as revenues fell 4 percent to 45.4 million rupees and cost of sales grew 7 percent to 26.5 million rupees.
Profits were impacted by other incomes falling 92 percent from a year ago to 10 million rupees.
Lanka Ceramic last traded at 132.50 rupees. (COLOMBO, 13 November 2018)