Sri Lanka to sell stock in Bank of Ceylon, People's Bank

ECONOMYEXT - Sri Lanka's state-run Bank of Ceylon and People's Bank will be allowed sell shares to the public to raise equity and boost capital, Finance Minister Mangala Samaraweera said.

Bank of Ceylon and People's Bank, will be sell shares, provided customers and employees are also allowed to buy stock, Samaraweera said presenting a budget for 2018.

State banks such as National Savings Bank and Bank of Ceylon had already tapped international capital markets, he said.

He said the banks needed boost capital to meet Basle III standard.

Deputy Policy Minister Harsha de Silva said last week that up to 10 percent of stock in state banks could be sold down.

Sri Lanka’s Royal Ceramics Sept net down 7.3-pct

ECONOMYNEXT – Sri Lanka’s Royal Ceramics said September 2017 quarter group net profit fell 7.3% to Rs682 million from a year ago.

Total group sales rose 12% to Rs7.5 billion, according to interim accounts filed with the stock exchange.

Quarterly earnings per share were Rs6.16. the stock last traded at Rs120.

EPS for the six months to September 2017 were Rs10.84 with net profit down 12% to Rs1.2 billion although sales rose 10% to Rs13.9 billion.

The accounts showed lower profits in the tiles, sanitaryware and aluminium businesses although plantations returned to profit from a loss the year before while tax costs were up 23% during the period.

During the quarter Lanka Tiles, a subsidiary of Royal Ceramics, invested in 51% shareholding in the subsidiary, Lankatiles Private Limited, incorporated in Bengaluru, India.
Lanka Tiles intends to distribute locally manufactured tiles in the Indian market through this subsidiary.

Sri Lankan stocks slip ahead of tax raising budget

Reuters: Sri Lankan shares closed lower on Thursday before the presentation of the national budget, where the South Asian island nation imposed new taxes on motor vehicles, telecoms, banks and liquor in a bid to boost revenues.

The budget deficit for the current year slipped to 5.2 percent of gross domestic product.

The Colombo stock index closed 0.47 percent weaker at 6,567.07, its lowest close since Sept. 15.

Turnover was 1.56 billion rupees ($10.16 million), more than this year’s average of around 952.4 million rupees.

“Investors waited for the budget. Some expected measures negative to stocks. But we have not seen any such measures,” said Prashan Fernando, CEO at Acuity Stockbrokers.

Finance Minister Mangala Samaraweera on Wednesday announced tax concessions worth a monthly 1.5 billion rupees ($9.8 million) to reduce the cost of living and boost consumption.

Shares in Hatton National Bank lost 1.9 percent, while large cap Nestle Lanka Plc closed 1.2 percent weaker.

Foreign investors sold shares worth net 32.8 billion rupees in the session, but they have been net buyers of shares worth 18.1 billion rupees so far this year.

($1 = 153.5000 Sri Lankan rupees)

(Reporting by Shihar Aneez; Editing by Toby Chopra)

Sunshine profits up 17.3% in 1H

Sunshine Holdings PLC reported impressive growth in top and bottom line performance after posting consolidated revenue of Rs. 10.3 billion and delivering a 24.2% Year-on-Year (YoY) increase in Profits After Tax (PAT) for the Group during the six-month period ended (1HFY18).

Consolidated group revenue increased by 8.9% Year-on-Year (YoY), bolstered by strong performances in Agri and FMCG (Fast Moving Consumer Goods) sectors, despite a slight reduction in growth within the Healthcare sector.

However, the group’s Healthcare business emerged as the largest contributor to Sunshine’s top-line performance, accounting for 38% of total revenue, while Agribusiness and Consumer sectors of the Group contributed 36% and 23% respectively of the total revenue.

Profit after tax (PAT) for the period in review rose to Rs. 1.1 billion, on the back of strong performance in the Agri sector, with strong positive results also being carried through to the Group’s Profit after Tax and Minority Interest (PATMI) which grew by 25.8% YoY to Rs 532 million. Watawala Plantation PLC, Group’s agribusiness subsidiary was the largest contributor to PATMI, accounting for 34.9% of the total and Healthcare accounting for 29.2%.

“Our continued strong financial performance reflects the dedication of our employees to delivering the best products and unmatched service and convenience to our customers,” said Vish Govindasamy, Group Managing Director of Sunshine Holdings PLC. “Our continuous focus on improving quality and internal efficiency through well-placed strategies has yielded strong results for the group, transforming another quarter into a successful, highly dynamic one.”

In total, the group’s healthcare segment generated Rs. 4.0 billion in turnover during 1HFY18, representing a slight dip against last year and representing 38.1% of Group turnover for the period.

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Sri Lanka's Piramal Glass Ceylon PLC (PGC) posts Rs 154 mn PAT for 1H

Piramal Glass Ceylon PLC (PGC) has reported its results for the first half of the year FY 2017-18 with Rs. 3,082 million of Revenue and Rs. 154 million of Profit After Tax (PAT) as against the corresponding period of previous year’s revenue of Rs.3,129 million and PAT of Rs. 73 million.

At half year, the company’s domestic sales was lower by 15% at Rs.2,184 million as against Rs. 2,586 million of previous year, whilst the export sales stood at Rs. 898 million as against Rs. 543 million of previous year, reflecting a growth of 65%.

The sale during the second quarter of FY2017-18 was Rs. 1,679 million, which reflects a growth of 16% when compared to the corresponding period of previous year figure of Rs. 1,445 million.

Domestic sales stood at Rs. 1,100 million as against Rs. 1,239 million of the similar quarter of the previous year, reflecting a de-growth of 11%. A dip in the overall domestic market was experienced which impacted the sales mainly in the food and beverage segments.

The management made special efforts to expand in the export market to offset the domestic setback. Thus the high growth seen in the export market is a outcome of the initiatives proactively converted to sales in the newer markets. PGC has demonstrated its capability by achieving export sales for the quarter of Rs. 579 million as against the Rs. 206 million received in the similar quarter of the previous year which depicted a growth of 181%.

Amidst the adverse sales impact, the company showed improvement in its profitability indicators. The gross profit has risen to 21% during the quarter under review as compared to the previous year similar quarter of 7%. During the first half of the year the gross profit was 23% as compared to 13% in the similar period of the previous year whilst the operating profit moved up to 14% from 4% of the previous year.

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Sri Lankan stocks steady ahead of budget; turnover at 7-week high

Reuters: Sri Lankan shares ended steady on Wednesday with turnover hitting a seven-week high on foreign selling in United Motors Lanka, while all eyes are on the 2018 budget presentation scheduled on Thursday.

Sri Lanka’s coalition government will seek to stoke exports and employment through support for the small businesses in its 2018 budget, a move that is likely keep the island nation’s fragile public finances under pressure.

The Colombo stock index closed 0.04 percent up at 6,598.26, recovering from its lowest level since Oct. 24 hit in the previous session.

The turnover was 3.35 billion rupees ($21.85 million), its highest since Sept. 15 and more than three times this year’s average of around 950 million rupees.

Foreign investors sold shares worth net 2.2 billion rupees in the session, mainly in United Motors. They are net buyers of shares worth 18.1 billion rupees so far this year.

“The market is awaiting the budget. The United Motors deal boosted the turnover,” said Jaliya Wijeratne, CEO at First Capital Equities.

Finance Minister Mangala Samaraweera will present the 2018 budget on Thursday at 0930 GMT.

Samaraweera announced tax concessions worth a monthly 1.5 billion rupees ($9.8 million), a day ahead of the budget, which is expected to focus on exports and fiscal consolidation.

Shares in United Motors Lanka, which accounted for 71.5 percent of the day’s turnover, rose 2 percent.

In a disclosure to the bourse, RIL Property Ltd, which gained 4.2 percent, said it has acquired 30 percent stake in United Motors at 78 rupees a share. 

($1 = 153.3000 Sri Lankan rupees) 

(Reporting by Shihar Aneez; Editing by Vyas Mohan)