Colombo Dockyard March quarter profit up 3-pct

COLOMBO (EconomyNext) – Sri Lankan ship builder Colombo Dockyard’s March 2015 quarter net profit rose three percent to 135 million rupees from a year ago despite a fall in sales as growth remained constrained by the global slump in shipping.

Earnings per share for the quarter were 1.87 rupees, according to a stock exchange filing of the yard, which is 51 percent owned by Japan’s Onomichi Dockyard Company Limited and in which state institutions have about 33 percent.

Colombo Dockyard sales fell 13 percent to 3.7 billion rupees in the quarter. Revenue from ship building, the yard’s biggest current source of revenue, fell during the quarter although gross profit rose.

Revenue and gross profit from ship repair were up slightly during the period.

The yard has been hit by the continuing downturn in shipping where an oversupply of ships has led to sharply lower freight rates and many lines making losses which forces them to put off new building orders and repair.

Sri Lanka’s Employees Provident Fund is the second biggest shareholder of Colombo Dockyard with a 16.3 percent stake and big stakes also held by the state-owned Sri Lanka Insurance Corporation’s General and Life funds, the Sri Lanka Ports Authority, Employees Trust Fund, and National Savings Bank.

Dipped Products records Rs. 1.7 b pre-tax profit in FY15

* DPL's glove making business saw turnover rise by 12% to Rs. 15 billion and pre-tax profit by 65% to Rs. 1.5 billion

Dipped Products Group (DPL), posted a turnover of Rs. 27.7 billion, a 20% increase for the financial year 2014/15 with a Profit Before Tax (PBT) of Rs. 1.7 billion up by 17%.

Hand Protection, the company’s glove making business contributed Rs. 15 billion to turnover, up 12% and a PBT of Rs. 1.5 billion, up 65% from the previous year.

The company’s plantation business reported Rs. 13.4 billion in turnover, up 28%. The plantation sector’s contribution includes the consolidation of an additional three months up to 31 March 2015. The sector posted Rs. 390 million Profit Before Tax, a drop of 48% from the previous year.

“DPL’s performance in the last financial year reflects our commitment to grow our global market share, and the increased efficiencies we have been able to achieve at our manufacturing facilities including the newly-established DPL Premier Gloves factory in the Biyagama Industrial Zone,” stated DPL Managing Director Dr. Mahesha Ranasoma.

The company’s overseas operations performed positively, with strong contribution from its Thailand production facility and ICOGUANTI, DPL’s marketing company in Italy despite being impacted by the weaker Euro during the latter part of the year.

Meanwhile, DPL’s community empowerment project, “Firstlight”, gathered admiration and support from its global customers, who are now stepping up to supporting the project’s expansion. The “Firstlight” project supports rural, small holder farmer families to grow and harvest rubber as a sustainable source of livelihood.

During the period, DPL also installed an innovative Reverse Osmosis (RO) system to reuse water from manufacturing processes at its Hanwella Rubber Products factory. The project will significantly reduce the factory’s water consumption and reinforce its commitment to sustainable water resource management practices.

DPL also invested in a new industrial glove manufacturing facility namely DPL Universal Gloves Ltd. during the financial year under review. In the meanwhile

DPL Premier Gloves commissioned two new manufacturing lines which will commence commercial operations during the new financial year.

Established in 1976, Dipped Products is one of the leading non-medical rubber glove manufacturers in the world, and accounts for 5% share of the global market. The company’s products now reach 68 countries. DPL is a subsidiary of the Hayleys Group.

The Board of Directors of Dipped Products PLC comprises Mohan Pandithage (Chairman), Dr. K.I.M. Ranasoma (Managing Director), Dhammika Perera, R.K. Witanachchi (Deputy Managing Director), F. Mohideen, K.A.L.S. Fernando, S.C. Ganegoda, M. Bottino, S. Rajapakse, N.A.R.R.S Nanayakkara and S.P. Peiris.
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