Sierra Cables register commendable performance in 2Q; wins new tender for uPVC pipes

Sierra Cables, Sri Lanka’s leading manufacturer of copper and aluminium cables at the forefront of meeting multiple needs across industrial sectors, posted commendable results for the second quarter, registering a positive economic growth for the Company and for the economy.

Operating in a challenging economic climate, the Group posted a revenue of Rs 2.2 billion during the first half of 20/21 with a net profit of Rs 70 million. Company yielded a Rs 87 million net profit during the first half, indicating a 8% year on year growth.

During the second quarter, the Group posted a revenue of Rs 1.5 billion, indicating a considerable growth of 104% over the first quarter, registering a strong streak of resilience and recovery from pandemic related economic conditions.

Fitch Ratings affirm Sierra Cables as BB (lka), having removed the Company outlook from the Rating Watch Negative as a result of their exceptional performance during an economic downturn.

“ We are pleased to have achieved these results having operated in an economic climate of restrictions and lockdown measures” says Harsha Jayatunga , CEO of Sierra Cables, “ Despite the pandemic and related economic downturn that restricted multiple activities, we succeeded in registering a growth that actually doubled during the second quarter, when compared to the first quarter.”

Widely recognised as a preferred supplier of cables for mega construction projects, Sierra Cables was honoured to be the cable supplier for the Rigid Tyre’s state-of-the-art, fully-integrated manufacturing plant, known as the largest tyre manufacturing plant in South Asia with an investment of USD 250 million, due to open in mid- January 2021.

Sierra Industries, a subsidiary of Sierra Cables, has been awarded a new tender recently by the National Water Supply & Drainage Board to the value of Rs 460 million for the Supply of uPVC pipes and fittings for Western South, Sabaragamuwa, Central, North Central, North Western, Southern and Eastern Regions of the island, meeting the annual requirement.

Sierra Industries has finetuned its product offerings in large scale projects and infrastructure development. The 75% concluded project of Integrated Water Supply Scheme in Gampaha, Attanagalla and Minuwangoda for the National Water Supply & Drainage Board with a contract value of Rs 750 million is one such project of the recent past.

With  90.72% ownership held by Sierra Cables PLC, Sierra Industries commenced operations in 2011. With a quality centric focus operational at a state-of-the-art production facility, the Company maintains leadership status in the industry manufacturing and marketing high quality uPVC pipes and fittings and is managed by an experienced team of professionals.

As an affirmation of its exceptional commitment to quality, Sierra Industries has also obtained SLS certification and ISO 9001 Quality Management System certification at the initial stages of establishing their manufacturing facility. The Company is further certified with SLS Certifications – SLS 147, SLS 659 and SLS 1286.

(Media Release)