Saturday 25 June 2016

Laxapana drives profit with penlite batteries, CFL bulbs and rechargeable torches

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Laxapana Batteries PLC, a subsidiary of E.B Creasy and Company PLC and the Colombo Fort Land and Buildings Group, has in the year ended March 31, 2016 been able to record what its chairman, Mr. S.D.R. Arudpragasam called "a satisfactory growth in terms of both revenue and profitability," in its recently released annual report.

He noted that revenue had grown to Rs 417 million during the year under review, up more than double from the previous year’s Rs. 190 million. The pre-tax profit had grown 108% to Rs. 40.5 million from Rs. 19.5 million achieved the previous year.

The company, previously Elephant Lite Corporation manufacturing torch batteries under the Laxapana brand name, is now into penlite batteries, CFL bulbs and rechargeable torches that constitute its core trading operations.

Arudpragasam said that sales had been very satisfactory during the current year against previous year’s achievements with their marketing divisions taking advantage of a vacuum in the market.

He said that in line with their policy of diversifying their range of products and manufacturing activities to achieve a more dominant presence in the lighting market, they had commenced a CFL bulb assembly operation in mid-2014.

"This new manufacturing initiative enabled the company to increase sales by twofolds in this sector," Arudpragasam said. "The CFL bulbs were targeted as a growth area for the company and accordingly strategies both in pricing and distribution were set in motion to achieve this objective. The company pursued a policy of producing high quality, cost effective products."

He said that to carry out this strategy efficiently, investments have been made in a new product quality testing facility. Opportunities for embarking on new product lines are being aggressively pursued to sustain the growth of the company’s business.

To take advantage of strategic locations of their Homagama factory site and the fast dwindling commercial space close to the city, investigations are underway to examine the financial feasibility of developing a logistic centre there, he reported.

The directors have proposed a declaration of a dividend of 55 cents per share for the year ended March 31, 2016, up 30 cents per share from the previous year’s dividend.

Arudpragasam expressed the confidence of his board that the management’s initiatives would continue to grow profits and improve performance in ensuing years.

Laxapana has a stated capital of Rs. 138 million with total assets running at Rs. 324.3 million and total liabilities at Rs. 128.9 million. Earnings per share were up to Rs. 1.14 from 37 cents the previous year with net assets per share up to Rs. 5.01 from Rs. 4.12. The market price per share at Rs. 7 at the close of the year was up from Rs. 4.60 a year earlier.

E.B Creasy and Company with 51.58% is the controlling share holder followed by Mr. S.D.R. Arudpragasam with 11.79%.

The Directors of the Company are Messrs S.D.R. Arudpragasam (Chairman), K.D. Sumanasekera, (Director/CEO) R.M Bopearatchi, S. Rajaratnam, R.C.A Welikala, P.M.A Sirimane, A.R Rasiah, S.M.P. Palihena, A.M Mubarak and S.W. Gunawardena.
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