Sri Lanka Textured Jersey net up 62-pct in March

ECONOMYNEXT - Profits at Textured Jersey Plc, a Sri Lanka based fabric group, rose 62 percent to Rs824 million in the March 2016 quarter from a year earlier, with revenues also up, interim accounts showed.

The group reported earnings of Rs1.23 per share. In the year to March, it reported earnings of Rs3.25 per share on total profits of Rs2.1 billion, which were up 63 percent.

Revenues rose 45 percent to Rs5.4 billion in the quarter and costs rose at a slower 38 percent to Rs4.3 billion, allowing the group to grow gross profits 87 percent to Rs1,088 million.

Finance income was a positive Rs21 million.

The group's cash reserves also rose to Rs2.9 billion, while at company level, cash reserves fell only marginally to Rs1.6 billion from Rs1.9 billion despite acquisitions.

"The group’s gross profit growth was driven by organic operational efficiencies and sustained development of its acquired entities Ocean India and Quenby Lanka, which were turned around in the first half of the financial year," Chairman Bill Lam told shareholders.

"The gross profit percentage further improved with the deployment of the TJ Coal plant, recording a 87 percent increase over the previous quarter and an 86 percent increase over the last financial year."

Sri Lanka's Dipped Product profits flat in March

ECONOMYNEXT - Sri Lanka's Dipped Products Products Plc, which has operations in non-medical gloves and rubber farms, said profits rose 4 percent to Rs270 million in the March 2016 quarter from a year earlier.

The group, which has operations in Thailand and Indonesia, reported earnings of Rs4.52 per share for the quarter.

For the year to March, the group reported earnings of Rs5.78 per share, with profits plunging 69 percent to Rs345 million.

Managing director M Ranasoma said the firm was hit by Asian competitors last year.

The firm was also forced to build new facilities in Sri Lanka following a pollution scare. The firm said its factories in the Biyagama Export Processing Zone are expected to help profits this year.

In the March quarter, revenues fell 8 percent to Rs5.9 billion, costs dropped 8 percent to Rs4.8 billion and gross profits decreased 9 percent to Rs1.09 billion. Other income and gains were up 104 percent to Rs147 million.

Sri Lankan shares edge up; block trades boost turnover

Reuters: Sri Lankan shares edged up on Wednesday, led by large caps on strong buying by foreign investors, while some large block trades by high net worth and institutional investors boosted turnover to a near three-week high.

Retail investors were waiting for cues from the ongoing release of March-quarter earnings, analysts said, while gains were capped on concerns over a government move to increase the value added tax and impose new taxes, which could hit the bottom line of many companies.

The benchmark stock index rose 0.14 percent, or 9.36 points, to 6,680.15.

Turnover was 1.43 billion rupees ($9.75 million), the highest since April 29 and nearly twice this year's daily average of around 784 million rupees.

Foreign investors, whose buying accounted for 73 percent of the total turnover, net bought 259.6 million rupees worth shares. They have net sold 3.67 billion rupees worth shares so far this year.

"The block trade in large caps helped to boost the turnover. However, investors are waiting for some direction on interest rates and March earnings," a stockbroker said.

Yields on t-bills, which move in tandem with market interest rates, rose between 11 and 14 basis points at a weekly auction on Wednesday.

Shares of Ceylon Tobacco Company Plc gained 0.9 percent, while top lender Commercial Bank of Ceylon also added 0.9 percent.

The 14-day relative strength index, now in the overbought zone, stood at 75.753 on Wednesday, compared with Tuesday's 75.128, according to Thomson Reuters data.

A level of 70 and above indicates the market is overbought.

($1 = 146.6000 Sri Lankan rupees)

(Reporting by Shihar Aneez; Editing by Biju Dwarakanath)

Keells Food Products posts Rs 334.7 mn profit

Keells Food Products PLC has delivered a commendable performance recording a consolidated profit after tax (PAT) of Rs.334.71 mn for the financial year ending March 31,2016.

“It is the outcome of the strategy formulated through intensive stakeholder engagement ensuring that our products are relevant to an increasingly discerning consumer. We continue to support our dealers and suppliers by investing in growing their business with us”, Keells Food Products Chairman Susantha Ratnayake said.

This enabled a more granular approach to marketing and promotions, driving revenue growth which was buoyed by increased disposable income.Gross Profit margin for the year remained consistent at 29 percent whilst Net Profit margin improved to 11 percent.

The Board has recommended the payment of a final dividend of Rs.8.00 per share in addition to the interim dividend of Rs. 4.00 per share paid in October 2015, resulting in a total dividend per share of Rs.12.00 for the financial year 2015/16. The total payout for the financial year will amount to Rs.306 million which amounts to a dividend pay-out ratio of 91 percent.

“Opportunities in export markets are also likely to produce positive results in 2016/17. During the last two years, our exports to India were hindered due to changes in regulations at the point of entry. It is heartening to note that these regulations have been relaxed during quarter four of the year under review and we are hopeful of recommencing our exports to India during the 2016/17 financial year,”Ratnayake told shareholders.

Net Cash flow from operating activities increased by 17% to Rs.451 million as a result of the business growth enumerated throughout the report.

Investment activities carried out during the year reflect the purchase of Rs.80 million worth of property plant and equipment to facilitate further expansion of the business as well as replacement of machinery and equipment beyond repair. Finance activities comprised the dividend payments of Rs.281 million and repayment of debt of Rs.50 million.

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Hayleys goes for Rs. 2 b debenture

Hayleys Plc has decided to raise Rs. 2 billion via a listed debenture.

The Colombo Stock Exchange said yesterday it has approved in principle an application submitted by Hayleys Plc for the listing of 20 million Senior, Unsecured, Listed, Redeemable, Rated Debentures at Rs. 100 each.

The three year debentures carry a floating coupon rate of six month (Gross) Treasury Bill rate plus 1.25% per annum payable semi-annually. The issue is open for application whilst the official opening is 25 May.

Funds raised will be to repay the three year debentures issued by Hayleys in July 2013, which carried a 14.25% interest rate payable quarterly.

The objectives of issuing the 2013 debenture namely refinancing part of the short term borrowings and restructuring the debt portfolio have been achieved by the Company during the 3 year tenor of the debenture.

Joint managers to the issue are Capital Alliance Partners Ltd., and People’s Bank Investment Banking Unit.

The issue is rated SL AA-Stable by ICRA Lanka Ltd. 

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