Sri Lanka’s Hayleys net up 49-pct in March 2016 quarter


May 25, 2016 (LBO) – Profits at Sri Lanka’s diversified Hayleys group surged 49 percent to 1.3 billion rupees in the March 2016 quarter amid strong net income growth, interim accounts showed.

The group reported earnings of 17.57 rupees per share for the quarter, up from 11.83 rupees per share from a year earlier.

Group revenues rose 2 percent to 24.6 billion rupees and cost of sales rose at a slower 1 percent to 18.2 billion rupees making gross profit to grew 6 percent to 6.36 billion rupees.

Other income rose to 322 million rupees, from 182 million rupees a year earlier and distribution expenses rose 46 percent to 906 million rupees.

Finance income rose to 242 million rupees, from 93 million rupees a year earlier.

Hayleys posted a profit before tax of 6.8 billion rupees for the financial year, a 7 percent increase over the previous year.

Earnings per share increased to 40.05 rupees from 34.42 rupees per share in the previous year.

The group’s income tax paid during the year inclusive of super gain tax amounted to 2.3 billion rupees and it ended the year with a group turnover of 92 billion rupees.

“Hayleys has focused on the segments with the greatest long-term growth potential,” CEO Mohan Pandithage said.

“All our sectors have shown profitability while we have further strengthened our market leadership in most of the sectors we operate in.”

The transportation sector contributed 1.5 billion rupees profit to the group bottom line and agriculture sector profits grew to 1.2 billion rupees from 1 billion rupees in the last fiscal year.

The purification sector contributed over 1.2 billion rupees in profits for the financial year.

As at 31 March 2016, net assets per share was at 411.40 rupees against 388.05 reported a year earlier.

Annualized price earnings ratio stood at 6.13 rupees at the end of financial year against 8.72 rupees recorded a year ago.