Sri Lanka textile mill boosts revenue, profits

Feb 20, 2013 (LBO) – Sri Lanka’s Kuruwita Textiles said boosted revenues 31 percent in the December 2012 quarter from a year earlier and profits rose 20 percent to 15.9 million rupees, despite narrower margins interim accounts showed. He said the company was working on new customers and strengthening existing relationships and was also working on improving productivity.

The firm reported earnings of 64 cents per share for the quarter. In the nine months to December the firm reported losses of 3.84 rupees per share on total losses of 95 million rupees, which fell from 276 million rupees a year earlier.

Revenues rose 36 percent to 2.34 billion rupees, cost of sales rose at a faster 42 percent and gross profits fell 15 percent to 2.1 billion rupees, according to interim accounts filed with the Colombo Stock Exchange.

Interest expenses rose to 45 million rupees in the quarter from 27 million rupees a year earlier.

Chairman Aslam Omar said the gross profit margin fell to 6 percent in the quarter from 10 percent a year earlier.

“This reduction is primarily due to the aggressive marketing strategy followed by the company during the period which resulted in top line growth,” Omar told shareholders.

“The manageme