Tuesday 23 February 2016

Royal Ceramics 3Q net up 32% over higher top line

Porcelain and ceramic manufacturer, the Royal Ceramics Lanka PLC group (RCL), increased its net profits by 32 percent to Rs.903.4 million for the quarter ended December 31, 2015 (3Q16) as a result of higher top line, the interim results showed. 

The earnings per share (EPS) for the quarter rose to Rs.8.15 from Rs.6.18 a year ago. The group turnover rose by 10.7 percent year-on-year (YoY) to Rs.7.68 billion. During the quarter, the distribution expenses rose by over 35 percent YoY to Rs.858.3 million. RCL, with its associate and subsidiary companies, is said to be controlling over 80 percent of Sri Lanka’s porcelain and ceramic tile industry. 

The Budget 2016 proposed to remove the import tariff protections on the domestic ceramic tile manufacturers. However, the impacts of this proposal are yet to be seen in the market place. Meanwhile, for the nine months ended December 31, 2015, the RCL group posted a net profit of Rs.2.14 billion (EPS of Rs.19.27), up 67 percent YoY. The top line grew a moderate 12 percent YoY to Rs.19.65 billion and the gross profit rose a strong 32 percent YoY to Rs.6.8 billion. 

During the nine months, the distribution expenses rose 30 percent YoY to Rs.2.24 billion. The segmental results showed the group’s tile and associated products business grew its net profit by 75 percent YoY to Rs.1.93 billion. 

The segment’s top line improved 15.9 percent YoY to Rs.12.4 billion. The sanitaryware business increased the net profits by 33 percent YoY to Rs.309.3 million. 

The top line grew by 16 percent YoY to Rs.1.08 billion. The paint and allied products segment narrowed net losses to Rs.44 million from Rs.75.2 million a year ago. 

The group’s plantation segment turned a net loss of Rs.119.6 million from a net profit of Rs.26.3 million. 

The packaging segment increased the net profits by 36.8 percent YoY to Rs.142.5 million. 

The aluminum business increased its bottom line by 51 percent YoY to Rs.172.4 million. 

The impact of the one-off Super Gains Tax on the group was Rs.262 million. As of December 31, 2015,high-net-worth investor Dhammika Perera’s holding company Vallibel One PLC had a 51 percent stake in the group while the state-controlled private sector pension fund, the Employees’ Provident Fund, had a 13.99 percent stake, up from 13.65 percent in September 2015. 
www.dailymirror.lk

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