Sri Lanka CIC profits up on government receipts

Feb 01, 2010 (LBO) – Sri Lanka’s Chemical Industries (Colombo) has returned to profit in the December 2009 quarter helped by a 250 million rupee past due payment from the government. In its annual report last year the firm said Chemcel (Pvt) Ltd, would make a speciality chemical with a US partner and was held through another unit, Chemanex which had invested 90 million rupees in the firm.

CIC posted group profits of 327.1 million rupees for the December against a loss of 21.3 million rupees a year earlier, interim accounts filed with the Colombo Stock Exchange showed.

Revenues grew 45.1 percent to 4,816 million rupees, while cost of sales grew at a slower 30.9 percent to 3,828 million rupees, allowing gross profits to increase 21.3 percent to 327.1 million rupees.

The firm said administrative expenses rose 38.8 percent in the December quarter from a year earlier, distribution expenses rose 15.2 percent to 235.75 rupees, but interest expenses fell 20.3 percent to 139.23 million rupees.

Other income rose to 292.4 million from 38.5 million a year earlier. CIC said 250 million rupees of the other income came from a delayed government payment for selling fertilizer at c