The firm, which got a listing in 2010, saw its share price close at 19.50 rupees, up 80-cents on Wednesday.
Group revenues grew 33 percent to 4.87 billion rupees and cost of sales grew at a slower 28 percent to 3.85 billion rupees allowing the firm to grow gross margins 54 percent to 1.01 billion rupees.
Profits were helped by one-off acquisition profits of 174 million rupees and 189 million rupees of other income.
The group was also hit by 149 million rupees of foreign exchange losses.
Laugfs said earnings were hit by escalating global LP Gas prices and a weak rupee that pushed import costs up.
At the core liquefied petroleum distribution division, profits fell to 217 million rupees in the half year from 367 million rupees a year earlier.Laugfs is Sri Lanka's second LP Gas distributor and also sells lubricants. Laugfs said it’s performed "strongly" despite gas unit operating in a “gloomy environment.”
Sri Lanka's rulers sometimes blocks price increases in energy despite the existence of a price formula. Ruler energy price manipulations, with banks credit has been a key trigger of currency depreciation.
Its leisure unit, posted profits of 169 million rupees due to negative goodwill, despite having no revenues.
During the year, Laugfs bought a 15-acre property along the south-western coastline in Waskaduwa to develop a five-star hotel that will be operational in 2013/14, Laugfs said in a statement.
The group said its first hotel, an 88-room hotel in Karukapone, Chilaw, is being built, with plans to open it during the latter part of the 2012/13 financial year.
Full-year profits of the services sector, which includes vehicle emission tests, rose to 157.68 million rupees over 94.80 million in 2011.
The property unit, which is building a block of serviced apartments in the capital of Colombo, made a full-year profit of 279.97 million rupees, over a loss of 1.03 billion rupees. The energy unit, made a modest profit of 132.19 in its first year of operation.
Laugfs Holdings Limited owns 67.8 percent (down from 17.28 in 2011) of Laugfs’ voting stock, followed by a 17.28 percent stake (up from 5.6 percent) by state-managed pension fund Employees Provident Fund (EPF).
Among non-voting shares, EPF controls 34.7 percent, while state-run Bank of Ceylon owned 6.18 percent.