Textured Jersey Lanka PLC (TJL) recorded Rs.1.2bn Net Profit

Textured Jersey Lanka PLC (TJL) recorded Rs. 1.2bn net profit for the year ended 31st March 2014 (FY2013/14) recording an impressive 14% year-on-year growth. This was supported by sustained margins and a robust 16% growth in turnover. Net profit for the quarter ended 31st March 2014 (4Q FY2013/14) also grew 9% year-on-year to reach Rs. 352mn.

Sales for FY2013/14 reached Rs. 12.7bn, 16% higher than that of last year. The company maintained its gross margin for FY2013/14 at 11% levels and was able to achieve a 15% year-on-year growth in gross profit to Rs. 1.5bn. The gross profit for 4Q FY2013/14 als increased 14% year-on-year reaching Rs. 403mn. The same trend continued at the operating profit level, with FY2013/14 margins maintained at around 8%, with Rs. 1.1b reported as the annual operating profit, up 10% year-on-year. This annual operating profit was achieved on the back of strong quarterly profit of Rs. 313mn for 4Q FY2013/14 up 9% year-on-year.

Further, TJL was able to maintain its near debt-free balance sheet and strong cash position throughout FY2013/14, resulting in Rs. 91mn in finance income for FY2013/14, representing a 15% growth year-on-year. As per the results released, as at 31st March 2014, the company had no borrowings and a strong cash position of Rs. 2.1bn.

Net profit for 4Q FY2013/14 was Rs. 352mn, representing a growth of 9% compared to the corresponding quarter of last year. This helped push the FY2013/14 net profit to Rs. 1.2bn, a 14% growth year-on-year.

The 10-12% capacity added through the modernisation and expansion project will be utilized during 1Q FY2014/15. Also with the revised timelines, the multi-fuel boiler plant should be in operation in 2Q FY2014/15. The envisaged cost savings from the multi-fuel boiler plant and the added capacity places TJL on a strong footing for future profit growth.

TJL’s order book for the first quarter of FY2014/15 was influenced by the adverse weather which affected most parts of the United States in the recent past. Some US retailers took a cautious approach for a couple of months, softening demand in our US business. Despite this, TJL’s European order book continues to be strong mitigating the overall impact. In general, management remains confident of another year of impressive growth, as the business has already recovered from the temporary impact in the first quarter. A strong year of results combined with the implementation of key strategic initiatives would add tremendous value to the shareholders and act as a platform for continuous future growth for the company.
Source: http://www.cse.lk/cmt/upload_report_file/1080_1400582196.pdf

Sri Lanka stocks steady at over 11-mth closing high; cbank keeps rates unchanged

May 20 (Reuters) - Sri Lanka stocks ended steady on Tuesday, hovering above their highest close in more than 11 months after the central bank kept key rates at multi-year lows.

The gains were led by telecom stocks and stockbrokers expect further gains due to lower interest rates.

The main stock index ended up 0.04 percent, or 2.37 points, to 6,321.61, its highest close since June 10 last year.

Before the market opened, the central bank kept policy rates steady for the fourth straight month, as expected.

The exchange witnessed net foreign outflow for the first time in 20 sessions. Offshore investors were net sellers of 17.3 million rupees ($132,700) worth of shares on Tuesday, but they have been net buyers of 842.56 million so far this year.

Shares of top mobile phone operator Dialog Axiata ended up 1.03 percent at 9.80 rupees.

The market has been on a rising trend since mid-March as many investors were compelled to return to the stock market because low interest rates have made fixed-income assets less attractive, stockbrokers said.

The index has risen 1.53 percent in the last eight sessions.

However, analysts have raised concerns over sluggish economic growth because of lower credit growth and consumer spending.

Despite a multi-year low interest rate regime, data showed private sector credit grew 4.3 percent in March from a year earlier, the slowest expansion since May 2010, while imports in February fell 6.2 percent on the year.

On Monday, central bank Governor Ajith Nivard Cabraal said Sri Lanka's private sector credit growth would pick up to around 15 percent by the end of this year and continue to improve through 2016.

On Tuesday, the central bank said it expected to introduce a new guarantee scheme for gold loans to boost credit growth. 

($1 = 130.3500 Sri Lanka rupees) 

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

Sri Lanka shares close higher

May 20, 2014 (LBO) - Sri Lanka's shares closed 0.04 percent higher Tuesday with index heavy stocks gaining despite net foreign selling, brokers said.

The Colombo benchmark All Share Price Index closed 2.37 points higher at 6,321.61 up 0.04 percent. The S&P SL20 closed 7.31 points higher at 3,480.10, up 0.21 percent.

Turnover was 416.61 million rupees, down from 589.93 million rupees a day earlier with 61 stocks closed positive against 104 negative.

Aitken Spence closed flat at 101.00 rupees with market transactions of 69.86 million rupees contributing 17 percent of the daily turnover.

Kuruwita Textile Mills closed 7.90 rupees higher at 28.80 rupees and Vallibel One closed 30 cents higher at 20.70 rupees, attracting most number of trades during the day.

Foreign investors bought 122.54 million rupees worth shares while selling 139.82 million rupees worth shares.

Lion Brewery Ceylon closed 13.50 rupees higher at 449.90 rupees and HNB closed 2.90 rupees higher at 157.90 rupees, contributing most to the index gain.

Dialog Axiata closed 10 cents higher at 9.80 rupees and Sri Lanka Telecom closed flat at 48.30 rupees.

Commercial Bank closed 1.00 rupee lower at 128.00 rupees and Commercial Leasing and Finance closed 10 cents lower at 3.90 rupees.

Aitken Spence Hotel Holdings closed 1.50 rupees lower at 77.00 rupees and John Keells Hotels closed 10 cents lower at 15.10 rupees.

AIA Insurance closed 12.90 rupees lower at 287.00 rupees and John Keells Holdings closed flat at 234.00 rupees.

JKH’s W0022 warrants closed 1.70 rupees lower at 62.30 rupees and its W0023 warrants closed 1.20 rupees lower at 69.00 rupees.

Hayleys records impressive PBT of Rs 5.1Bn

Sri Lanka online property site launched Germany's Rocket Internet

May 20, 2014 (LBO) - Lamudi, an online property and real estate portal started by German based Rocket Internet which focuses on emerging markets has launched a Sri Lanka specific site.

"Now is the perfect time to be entering the Sri Lankan market," Wilhelm Hammes, Managing Director of Lamudi Sri Lanka (www.lamudi.lk) said in a statement.

"The property sector has seen significant growth since 2009, as infrastructure has improved and investors have come back. We want to be there to grow alongside this thriving industry."

Rocket Internet specializes in launching e-commerce sites in developing countries often using models that have been successful elsewhere.

The group has become a strong player in several East Asian nations ranging from Malaysia to Vietnam with its Lazada online retail site.

The firm said the Lamudi.lk will bring the total countries the property portal is operating to 28 and it was already market leader in Bangladesh and Myanmar.

It will provide competition to existing portals such as lankapropertyweb.com, bhoomi.lk, and lankaland.lk.

Foreign e-commerce firms have shown interest in Sri Lanka in recent years. Saltside Technologies, a Sweden based company launched ikman.lk, a classified site that has quickly caught on, though it is still not charging fees.

Mahesh Amalean Joins Dialog Board

Sri Lanka's premier connectivity provider, Dialog Axiata PLC, appointment of Deshamanya Mahesh Amalean as an Independent Non-Executive Director to its Board. He will join the Dialog Board with effect from May 15, 2014.

The Chairman and visionary leaderof apparel manufacturer, MAS Holdings, Mahesh Amalean is highly regarded for his astute management vision and governance principles, which has steered MAS into one of the largest and most respected business entities in the region. He brings close to three decades of management experience to the already strong and diverse Board of Dialog Axiata, which would gain further strength with his presence.

Mahesh Amalean has a Bachelor of Technology degree in Chemical Engineering from the University of Madras and completed his executive education at Columbia Business School.

In 2011, The Open University of Sri Lanka conferred an Honorary Degree of Doctor of Philosophy (HonorisCausa) to Mahesh in recognition of his administrative, business management and academic credentials together with his outstanding contributions towards improving the quality of life of the people of Sri Lanka.
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Asian Alliance Insurance achieves 1.1 b GWP in 1Q

Asian Alliance Insurance PLC (AAI) which is part of the Softlogic Group, further consolidated its industry position by recording strong financial performance for the first Quarter of FY2014 ending March 31, 2014. AAI achieved Rs. 1.146 Billion in Gross Written Premium (GWP) for the quarter in addition to posting an exceptional year on year growth of 19% compared to the previous period.

Life business grew by as much as 23% against an industry average of 10.15% whilst the General Insurance Division recorded a GWP growth of 12% for the first Quarter against negative industry growth of -0.45%.

The Company recorded a Net Profit before Tax of Rs. 255.2 Million for the first Quarter boosted by a strong performance in Life business where profits were determined based on actuarial assessment, that was complimented with exceptional investment portfolio gains during the quarter, in a scenario where both its fixed income and equity portfolios outperformed respective benchmarks by a significant margin.

Asian Alliance Insurance has charted an ambitious blueprint for growth, buoyed by the optimistic outlook for the insurance industry as a whole and also inspired by the key performance indicators of a fast paced Sri Lankan economy.

AAI’s strong performance is the result of a strategic vision which leverages on the valuable synergies of the Softlogic Group to re-affirm the company's journey towards being a leading player in the industry. AAI Life customers enjoy a level of service and attention that is unmatched in the industry where the focus remains undivided and is always aimed at providing the best protection plans that are perfectly customized to meet specific requirements of a diverse clientele.
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