Sri Lanka Kuruwita Textiles back in profit

June 03, 2010 (LBO) – Sri Lanka’s Kuruwita Textile Mills said it returned to profit in the 2010 financial year from losses the year before although a sharp increase in raw material prices caused a loss in the fourth quarter. The firm, which supplies treated fabric to garment manufacturers, made a net profit of 15.6 million rupees in the financial year ending March 31, 2010 compared with a loss of 167 million the year before.

However, in the March 2010 quarter it made a loss of 39 million rupees against a profit of 51 million in the same quarter a year ago because of sharply higher prices of cotton and greige, unbleached or undyed cloth or yarn.

Kuruwita Textile Mills had earnings per share of 0.62 rupees in the year compared with a loss per share of 6.67 rupees the previous year.

The firm, a unit of Brandix Textile Holding, one of the island’s biggest apparel exporters, said annual sales were stagnant at 6.3 billion rupees.

Kuruwita Textile Mills chairman Aslam Omar said the turnaround would have been better if not for the loss in the fourth quarter.

Economic recovery in key markets like the US would help future exports although the benefits of possible stronger European growth had been stunted by th