Wednesday 22 May 2019

Sri Lanka Singer group in the red in March quarter

ECONOMYNEXT - Singer (Sri Lanka) Plc, a consumer durables group which also has a financing arm made an eight million rupee loss in the March 2019 quarter, against a profit of 153 million rupees a year earlier, amid weak sales growth and higher financing costs.

The group, a unit of Hayleys Plc, reported a loss of 0.02 cents per share for the March quarter. In the 12 months to March the group reported earning 67 cents per share on total profits of 799 million rupees.

Gross revenues grew 2.9 percent to 14.0 billion rupees in the March quarter from a year earlier, and cost of sales rose 1.4 percent to 9.7 billion rupees.

Direct interest grew 25 percent to 349 million rupees.

Gross profits grew 5.2 percent to 3.9 billion rupees.

Selling and administration expenses grew 14.9 percent to 2.9 billion rupees.

"Additional adverse impacts such as rupee devaluation, increased borrowings due to import restrictions and imposition of 100 percent Letter of Credit margins, higher impairment costs arising from new accounting standards and new levies on financial sector hampered growth potential and profit earnings," Singer said in a statement.

Impairment losses on trade receivables grew to 340 million rupees from 199 million rupees.

The group interest costs, which include its finance company unit, rose to 804 million rupees from 554 million rupees a year earlier.

But there was an exchange gain of 169 million rupees, compared to a loss of 32 million rupees last year.

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