Alumex PLC, the Hayleys subsidiary which is the country’s leading aluminum extruder, posted below target results in terms of both revenue and profits in the year ended Mar. 31, 2018 but is poised to take-off with a new state-of-the- art production facility at Ekala enabling an additional output of 1,000 mt., the company’s annual report said.
"This will undoubtedly enhance the company’s position as the leading aluminum extruder in Sri Lanka, both with a higher capacity and higher quality of products, enabling the company to capture the premium market segments in both Sri Lanka and the South East Asian region," Alumex Chairman Mohan Pandithage said in the company’s recently released annual report.
A fault in the main extrusion line discovered during a plant refurbishment program at the beginning of the financial year resulted in the loss of 750 mt. production capacity. Although production returned to normal within a short time, sales did not recover at the same pace as the overall demand for aluminum products in the construction industry declined in the latter half of 2017, Pandithage said.
"In this backdrop, our marketing strategy had to be reassessed to suit the competitive environment. These changes, together with the increased demand saw a return to profitability in the last quarter of the financial year."
With the GDP from construction expected to grow seven to eight percent in the next few years a consistent demand for aluminum extruded products is projected and with the strategies the company has in place, it was well positioned to restore the momentum of its business, he said.
The year under review saw the company’s turnover down 5% to Rs. 4.5 billion and the group profit after tax down 52% to Rs. 364 million from the previous year’s Rs. 753 million. Net assets per share were down to Rs. 7.53 from Rs. 7.74 and a dividend of Rs. 1.05 per share was paid, down from the previous year’s Rs. 1.45.
Managing Director Rohan Peris said that their having to keep the main extrusion line out of production for two months compounded an unfavourable market situation. There was also an unforeseen downturn in the growth of the construction industry. Curtailing production led to delays in completion of orders and delivery resulting in reduced sales and a drop in market share although they retained their market leadership.
Their upgraded production facility at Ekala will gear the company to supply aluminum extrusion to upcoming large scale infrastructure projects, both ongoing and in the pipeline. These include the Megapolis, Port City, multi-storey luxury hotels and apartments and commercial mixed development projects.
Alumex has a stated capital of Rs. 283.7 million, reserves of Rs. 665.5 million and retained earnings of Rs. 1.3 billion in its books. Total assets ran at Rs. 6.4 billion and liabilities at Rs. 4.15 billion.
Hayleys with 52.59% of the company is the controlling shareholder, followed by Akbar Brothers (13.50%) and Rosewood (Hirdaramani) 9.80%. Dean Foster, a Hayleys subsidiary owns 4.75%.
The directors of the company are Messrs. Mohan Pandithage (chairman), RP Peris (MD), DWPN Dediwela (COO), SC Ganegoda, RP Pathirana (alternate AJ Hirdaramani), AA Akbarally (alternate T. Akbarally), Dr. H. Cabral and S. Munaweera.
"This will undoubtedly enhance the company’s position as the leading aluminum extruder in Sri Lanka, both with a higher capacity and higher quality of products, enabling the company to capture the premium market segments in both Sri Lanka and the South East Asian region," Alumex Chairman Mohan Pandithage said in the company’s recently released annual report.
A fault in the main extrusion line discovered during a plant refurbishment program at the beginning of the financial year resulted in the loss of 750 mt. production capacity. Although production returned to normal within a short time, sales did not recover at the same pace as the overall demand for aluminum products in the construction industry declined in the latter half of 2017, Pandithage said.
"In this backdrop, our marketing strategy had to be reassessed to suit the competitive environment. These changes, together with the increased demand saw a return to profitability in the last quarter of the financial year."
With the GDP from construction expected to grow seven to eight percent in the next few years a consistent demand for aluminum extruded products is projected and with the strategies the company has in place, it was well positioned to restore the momentum of its business, he said.
The year under review saw the company’s turnover down 5% to Rs. 4.5 billion and the group profit after tax down 52% to Rs. 364 million from the previous year’s Rs. 753 million. Net assets per share were down to Rs. 7.53 from Rs. 7.74 and a dividend of Rs. 1.05 per share was paid, down from the previous year’s Rs. 1.45.
Managing Director Rohan Peris said that their having to keep the main extrusion line out of production for two months compounded an unfavourable market situation. There was also an unforeseen downturn in the growth of the construction industry. Curtailing production led to delays in completion of orders and delivery resulting in reduced sales and a drop in market share although they retained their market leadership.
Their upgraded production facility at Ekala will gear the company to supply aluminum extrusion to upcoming large scale infrastructure projects, both ongoing and in the pipeline. These include the Megapolis, Port City, multi-storey luxury hotels and apartments and commercial mixed development projects.
Alumex has a stated capital of Rs. 283.7 million, reserves of Rs. 665.5 million and retained earnings of Rs. 1.3 billion in its books. Total assets ran at Rs. 6.4 billion and liabilities at Rs. 4.15 billion.
Hayleys with 52.59% of the company is the controlling shareholder, followed by Akbar Brothers (13.50%) and Rosewood (Hirdaramani) 9.80%. Dean Foster, a Hayleys subsidiary owns 4.75%.
The directors of the company are Messrs. Mohan Pandithage (chairman), RP Peris (MD), DWPN Dediwela (COO), SC Ganegoda, RP Pathirana (alternate AJ Hirdaramani), AA Akbarally (alternate T. Akbarally), Dr. H. Cabral and S. Munaweera.
www.island.lk
No comments:
Post a Comment