Sri Lanka knitted fabric maker cuts losses

Nov 06, 2012 (LBO) – Sri Lanka’s Hayleys MGT Knitting Mills Plc, knitted fabric marker said it has cut losses and improved gross margins after going through a restructuring process over the past year. The firm which files US dollar denominated accounts and statements translated into rupees, lost 43 million rupees in the September 2012 quarter down from 186 million rupees a year earlier.

The firm reported a loss of 29 cents per share for the quarter. For the six months to September the company reported a loss of 56 cents per share on a total loss of 85.1 million rupees.

Revenues in the March quarter fell 11 percent to 1.51 billion rupees, cost of sales fell at a faster 15 percent to 1.37 billion rupees allowing the firm to grow gross profits 68 percent to 145 million rupees.

Chairman Mohan Pandithage said in a statement that the company had been put on a recovery path, an enterprise resource planning software has been implemented and it expected to be out of the red by the end of the year.

Last year the firm found inventory losses and took a write down.

Its gross margin had been improved nearly 5 percent through eliminating waste and containing costs, the firm said.

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