Sri Lanka tiles industry Sept quarter profits up, sales stagnant

ECONOMYNEXT – Two Sri Lankan tile manufacturers under Lanka Ceramics group controlled by Royal Ceramics have reported double-digit profit growth for the September 2015 quarter compared with a year ago despite falling or stagnant sales as costs fell.

Net profit of Lanka Tiles rose 27 percent to 275 million rupees in the quarter from a year ago, according to interim results filed with the stock exchange.

Gross sales fell 4.8 percent to 1.4 billion rupees with exports down by almost half to 45 million rupees while local sales also fell 2.2 percent to 1.37 billion rupees.

The accounts showed costs fell sharply. Lanka Tiles said earnings peer share for the September quarter rose to 5.19 rupees from 4.10 rupees a year ago.

For the six months ending September 2015, EPS rose 39 percent to 8.88 rupees.

Lanka Walltile said net profit rose 15 percent to 306 million rupees in the September 2015 quarter from a year ago.

Sales were stagnant but costs fell. EPS for the quarter rose to 5.60 rupees from 4.88 the year before.

For the six months ending September 2015, net profit rose 20 percent to 482 million rupees with EPS rising to 8.89 rupees from 7.30 rupees.

Sri Lankan manufacturers are benefitting from lower energy and finance costs with lower interest rates and inflation in the island.

Lanka Ceramics, which controls the two tile firms, said September 2015 quarter net profit rose almost 21 percent to 205 million rupees from a year ago. EPS rose to 6.83 rupees from 5.68 rupees.

Quarter revenue was stagnant at 3.77 billion rupees but costs fell.

In the six months ending September EPS of Lanka Ceramics rose to 11.10 rupees from 8.53 rupees the year before.

Profits from its tile units rose by half and that from its packaging materials and aluminium subsidiaries products grew while plantations suffered a loss. (Colombo/November 04 2015)

Sri Lanka shares snap 4-session losing streak

Reuters: Sri Lankan stocks edged up on Wednesday, reversing a four-session losing streak, led by blue chips but volume was thin as investors awaited a key government policy statement.

The main stock index ended 0.05 percent higher at 7,003.57, edging up from its lowest close since July 13 hit in the previous session.

The day's turnover was 547.9 million rupees ($3.88 million), around half of this year's daily average of 1.1 billion rupees.

Prime Minister Ranil Wickremesinghe is expected to announce the country's medium-term economic policy framework on Nov. 5, outlining the government's economic priorities ahead of the 2016 budget scheduled for Nov. 20.

"Investor confidence is not that great. Everybody is waiting for the prime minister's statement tomorrow," said Dimantha Mathew, a research manager at First Capital Equities (Pvt) Ltd.

Analysts said investors are also waiting for the budget scheduled for Nov. 20.

Shares in Dialog Axiata Plc rose 2.70 percent while conglomerate John Keells Holdings Plc gained 1.07 percent.

However, foreign investors were net sellers of 63.9 million rupees worth of shares on Wednesday, extending the year-to-date net outflow to 3.73 billion rupees worth of equities. 

($1 = 141.3000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

Sri Lanka Chevron lubricants unit profits up 11 pct

(LBO) – Sri Lanka’s Chevron Lubricants Lanka Plc said profits in the September quarter rose 11 percent to 834 million rupees from a year earlier despite the shrinking of oil prices locally and globally.

Chevron Lubricants Lanka PLC carries on the business of importing, blending, distributing and marketing of lubricant oils and greases.

The firm reported earnings of 6.96 rupees per share compared to 6.25 rupees per share in the same quarter last year in interim accounts filed with the Colombo Stock Exchange showed.

In the September quarter revenues fell 3 percent to 2.99 billion rupees, cost of sales also fell 11 percent to 1.62 billion rupees and gross profits increased 9 percent to 1.37 billion rupees.

Finance income of 48 million rupees, was up 90 percent a year earlier.

Sri Lanka's Treasuries yields drop

ECONOMYNEXT - Sri Lanka's Treasuries yields dropped across maturities at Wednesday's auction with the three month yield dropping 17 basis points to 6.44 percent, data from the state debt office showed.

The 6-month month yield dropped 12 basis points to 6.87 percent and the 12-month yield dropped 06 basis points to 7.00 percent.

The debt office accepted 6.0 billion rupees of 3-month bills, 16 billion rupees of 6-month bill and 3.5 billion rupees of 12-month bills, totalling 25.5 billion rupees.