Sri Lanka’s MTD Walkers losses up on rising costs


May 30, 2016 (LBO) – Sri Lanka’s infrastructure solutions provider MTD Walkers posted losses of 266 million rupees in the March 2016 quarter, up 333 percent from a year earlier, amid engineering segment losses with rising sales and finance costs, interim accounts showed.

The troubled firm reported losses of 1.59 rupees per share against the 48 cents loss per share reported a year ago.

Revenues rose 55 percent to 4.6 billion rupees and cost of sales rose at a faster 101 percent to 4.0 billion rupees, making 611 million rupees gross margin, a 39 percent drop against a year earlier.

Other income turned to a positive figure of 5.2 million rupees from a negative figure of 5.0 million rupees last year.

Finance cost rose 135 percent to 408 million rupees in the March quarter resulting in a 314 million rupees loss in net finance income.

In the twelve months to March, the firm lost 531 million rupees, against a 765 million rupees profit reported a year ago.

A segment analysis for the 12 months showed profit of the group’s main civil engineering sector falling.

The profit from civil engineering fell from 1.6 billion rupees to 446 million rupees in the twelve months while the engineering segment loss further increased to 312 million rupees from 94 million rupees.

The marine engineering sector reported a loss of 1.3 billion rupees while trading business reporting a 93 million rupees loss.

Debt to equity ratio stood at 190.36 percent in 2016 compared to 126.30 percent reported in 2015.

By the end of 2016 financial year there were 2,357 public shareholders holding 9.22 percent of company shares.