Financial Times

DPL profits rise in second quarter
Dipped Products Ltd. of the Hayleys conglomerate has reported a sharp rise in profits for the second quarter of the 2004/05 financial year.

The group, comprising rubber glove manufacturing, distribution and marketing, and plantations, recorded a net income of Rs 105 million for the second quarter ended September 30, 2004, a substantial growth of 184 percent compared with the net income of Rs 37 million for the same quarter a year ago.

Group turnover rose to Rs 1.5 billion from Rs 1.3 billion over the same period. A significant decline in finance cost, earnings from its associate companies and the continued growth in turnover contributed to this performance, according to the firm's non-audited interim financial statements.

Despite a significant increase in its borrowings, the group's finance costs declined to Rs 11 million in second quarter of 2004 from Rs 36 million in the same quarter of the previous year. A net profit of Rs 3.6 million came from its associate company, Mabroc Teas (Private) Limited.

The company made a bonus issue of one ordinary share for every five existing ordinary shares on August 12, 2004 by capitalizing Rs 49.8 million from its general reserves. It also paid a dividend of Rs 49.8 million which was declared at the last annual general meeting for the year ended March 31, 2004.

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