Sri Lanka's Royal Ceramics December quarter profit down 8.6-pct

ECONOMYNEXT – Net profits at Sri Lanka's Royal Ceramics group fell 8.6 percent to 814 million rupees in the December 2018 quarter from a year ago, as costs rose despite lower tax expenses, interim accounts showed.

Total quarterly sales of the group, part of Vallibel One group, rose 8.2 percent 10.5 billion rupees, according to the accounts filed with the stock exchange.

Quarterly earnings per share were 7.34 rupees.

Shares of Royal Ceramics group, which enjoys protective import tariffs on their ceramic products, were trading at 72.10 Monday morning, up 40 cents or 0.6 percent.

In the nine months to December 2018, EPS was 14.47 rupees, with net profit down 23 percent to 1.6 billion rupees while sales were up eight per cent to 25.6 billion rupees.

The accounts showed finance expenses rose 59 percent to 590 million rupees in the December 2018 quarter.

The Royal Ceramics group includes sanitaryware maker Rocell Bathware Limited and the tile manufacturers, Lanka Tiles and Lanka Walltiles.

Group tax costs fell 39 percent to 244 million rupees in the December quarter. a

Sri Lanka’s Aitken Spence Hotel Holdings December net up 38.5-pct

ECONOMYNEXT – Sri Lanka’s Aitken Spence Hotel Holdings said net profit rose 38.5 percent to 339 million rupees in the December 2018 quarter from a year ago.

Sales rose eight percent to 4.9 billion rupees over the period, interim accounts filed with the stock exchange showed.

Earnings per share for the December quarter were one rupee. The share closed unchanged at 26.10 rupees Monday.

The Aitken Spence Hotel Holdings group made a loss per share of 26 cents for the nine months to December 2018 with a net loss of 76 million rupees on sales of 12.4 billion rupees.

Six months of the period under review relates to the off season of the tourism industry both in Sri Lanka and overseas where the group operates, a note to the accounts said.

The group’s Sri Lankan hotels made a loss of 115 million rupees during the period while its overseas resorts, in the Middle East, Maldives and India, made a profit of 319 million rupees, lower than the year before.

Sri Lanka’s Hayleys December quarter net profit up 147-pct

ECONOMYNEXT – Sri Lanka’s Hayleys group said net profit shot up 147 percent to 439 million rupees in the December 2018 quarter from a year ago.

Group sales rose 20 percent in the quarter to almost 60 billion rupees, interim accounts filed with the stock exchange showed.

December quarter earnings per share were 5.86 rupees. Hayleys share price closed unchanged at 184.60 rupees Monday.

December quarter gross profit was up 15 percent to 13 billion rupees.

The accounts showed a sharp rise in net finance costs which went up 37 percent to 2.7 billion rupees during the quarter.

EPS for the nine months to December 2018 was 46 cents with net profit down 82 percent to 35 million rupees and sales up 45 percent to 163 billion rupees.

Hayleys said in a statement the group’s nine months operating profit rose 68 percent to 11.3 billion rupees.

“However, the net finance cost increased to 7.7 billion rupees from 3.9 billion rupees with the inclusion of Singer Group’s finance cost and the cost of funding recent acquisitions,” it said.

Hayleys chairman and ehief executive Mohan Pandithage said their recent acquisition of Singer (Sri Lanka) helped enhance the group’s retail sector profits.

“Further, the outstanding performances in our export businesses, increased volume in the transportation and logistics sector also have contributed well to the group’s bottom line.”

Sri Lanka's NDB net up 74.4-pct in December

ECONOMYNEXT - Sri Lanka's National Development Bank Plc (NDB) net profits in the December quarter grew 74.4 percent to 1.7 billion rupees from a year earlier with higher interest income, the firm said.

NDB's earnings per share for the quarter were 9.21 rupees, the bank said in its interim financial report. The firm's share closed 30 cents lower at 104.70 rupees on Monday.

For the year 2018, NDB's earnings per share was 28.67 rupees, with net profits growing 51 percent to 5.3 billion rupees from 2017.

The bank said its profitability was at the highest level in its 40-year history.

Interest income for the December quarter were 12.6 billion rupees, up 27.5 percent from a year earlier, while interest expenses were up 24.4 percent to 8.4 billion rupees and net interest income was up 34 percent to 4.3 billion rupees.

Other operating income grew 317 percent to 836.6 million rupees.

Individla impairment against bad loans grew 384.5 percent to 1.1 billion rupees.

The bank said this was due to precautionary provisions made for some loans under a new futuristic model mandated in new accounting standards, compared to the earlier incurred loss model.

NDB's loan book as at December 31, 2018 was 344.6 billion rupees, up 26 percent from a year earlier.

Bad loans grew to 2.85 percent from 1.83 percent. NDB said this was lower than the industry average of 3.4 percent for 2018.

Deposits grew 27 percent to 347.2 billion rupees.

NDB's net assets per share were 185.63 rupees, down 4 percent from a year earlier. Total assets grew 23 percent from a year earlier to 478.5 billion rupees.

The bank's tier 1 capital ratio was 10.44 percent in 2018, down from 10.49 percent in 2017, against a regulatory requirement of 7.875 percent.

Total capital ratio fell to 13.67 percent from 15.18 percent a year earlier, with a regulatory minimum of 11.875 percent.

Tourist arrivals to Sri Lanka up 2.2-pct in Jan 2019

ECONOMYNEXT - Tourist arrivals to Sri Lanka in January 2019 rose 2.2 percent from a year earlier to 238,924, the tourism development authority said.

Arrivals grew 3.5 percent in November and 10.3 percent in December with officials saying a constitutional crisis dampened bookings.

In 2018, Sri Lanka welcomed 2,333,796 visitors, up 10.3 percent from a year earlier.

Sri Lanka rupee ends weaker on stock-related outflows

Reuters: ** Sri Lanka's rupee ended weaker on Tuesday, as banks bought dollars to facilitate stock-related outflows and importer greenback demand, market sources said. 

** The stock market closed down as foreign investors continued selling for the second straight session on Tuesday. 

** The rupee closed at 178.30/40 per dollar, compared with Monday's close of 177.75/90, market sources said. 

** The local currency posted a weekly loss of 0.7 percent last week due to importers' demand in the latter part of the week. 

** It has risen 2.5 percent so far this year as exporters converted dollars and foreign investors purchased government securities after a statement from the International Monetary Fund (IMF) and government's $1 billion debt repayment boosted confidence. 

** Investor confidence in Sri Lanka is stabilizing after the country repaid a $1 billion sovereign bond in mid-January, the central bank chief said last month. 

 ** The bond market saw inflows of 11.4 billion rupees in the week ended Feb. 6, recording its third straight weekly inflow, the latest central bank data showed. 

** Worries over heavy debt repayment after a 51-day political crisis that resulted in a series of credit rating downgrades dented investor sentiment as the country is struggling to repay its foreign loans. 

** The rupee dropped 16 percent in 2018, and was one of the worst-performing currencies in Asia due to heavy foreign outflows. 

** The Colombo Stock Index ended 0.51 percent weaker at 5,930.21 on Tuesday, its lowest close since Nov 23. 

** Bourse fell 0.3 percent last week, and declined about 1 percent in January. 

** The turnover was 1.1 billion Sri Lankan rupees ($6.18 million), well above last year's daily average of 834 million rupees. 

** Foreign investors were net sellers of 261.4 million rupees worth shares on Tuesday. They have been net sellers of 4.8 billion rupees worth of stocks so far this year, and 18.2 billion rupees since the political crisis began on Oct. 26, 2018. 

($1 = 178.1000 Sri Lankan rupees) 

 (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Rashmi Aich)

Sri Lanka rupee ends weaker as importer dollar demand weighs

Reuters: ** Sri Lanka's rupee ended weaker on Friday as importers purchased U.S. dollars while releasing goods after a week-long strike by customs officers that left 6,000 containers stranded at the country's main port was called off. 

 ** The strike by thousands of officials began a week ago in protest at the sacking of Director General PSM Charles, who authorities blamed for a drop in customs revenue last year. The strike, which also put pressure on food prices, ended after the government agreed to reinstate their boss for three months. 

 ** Stocks closed slightly firmer for a second straight session. 

** The rupee closed at 177.90/178.00 per dollar, compared with Thursday's close of 177.65/85, market sources said. 

** Rupee posted a weekly loss of 0.7 percent this week due to importer demand in the latter part of the week. 

 ** It rose 2.8 percent last week as exporters converted dollars and foreign investors purchased government securities after a statement from the International Monetary Fund (IMF) and government's $1 billion debt repayment boosted confidence. 

** The currency has appreciated 2.6 percent so far this year. 

 ** Investor confidence in Sri Lanka is stabilising after the country repaid a $1 billion sovereign bond in mid-January, the central bank chief said last week. 

 ** Worries over heavy debt repayment after a 51-day political crisis that resulted in a series of credit rating downgrades dented investor sentiment as the country is struggling to repay its foreign loans, with a record $5.9 billion due this year, including $2.6 billion in the first three months. 

 ** The rupee dropped 16 percent in 2018, and was one of the worst-performing currencies in Asia due to heavy foreign outflows. 

** The political crisis had dented investor sentiment and delayed Sri Lanka's borrowing plans. Sri Lanka had plunged into political turmoil when President Maithripala Sirisena abruptly removed Prime Minister Ranil Wickremesinghe and then dissolved parliament. Wickremesinghe was later reinstalled as premier. A court ruled the dissolution was unconstitutional. 

 ** The Colombo Stock Index ended 0.07 percent firmer at 5,964.14 on Friday. 

 ** Bourse fell 0.3 percent for the week, and declined 1 percent in January. 

** Turnover was 474.7 million rupees ($2.67 million), less than last year's daily average of 834 million rupees. 

** Foreign investors were net buyers for the first time in six sessions and net bought 51.8 million rupees worth shares on Friday. However, they have been net sellers of 3.4 billion rupees worth of stocks so far this year, and 16.8 billion rupees since the political crisis began on Oct. 26, 2018. 

** The bond market saw inflows of 924.7 million rupees in the week ended Jan. 30, the latest central bank data showed. 

($1 = 177.5000 Sri Lankan rupees) 

 (Reporting by Ranga Sirilal and Shihar Aneez)