Sri Lanka Talawakelle Tea buoyed by rubber, hydro power

May 02, 2011 (LBO) – Sri Lanka’s Talawakelle Tea Estates said March 2011 quarter net profit rose nine percent to 72 million rupees from a year ago with lower tea earnings offset by gains from rubber and hydro power. Profits from mini-hydro power soared 319 percent to 29 million rupees during the quarter from seven million. Total group revenue of the firm, part of the Hayleys conglomerate, rose five percent to 743 million rupees from a year ago, a stock exchange filing said.

The results showed a reduction in costs with finance costs being halved. Basic earnings per share for the March 2011 quarter were 3.47 rupees against 2.51 rupees a year ago.

Revenue from tea during the quarter was static at 683 million rupees while profit fell 17 percent to 102 million rupees, with bad weather affecting the quality of tea made during the period.

Revenue from the group’s rubber estates almost doubled to 19 million rupees with profit soaring 164 percent to 13 million rupees as the firm made gains on the global commodities boom.