Lanka Tiles PLC (LTP) turned in a good performance in its last financial year, backed by domestic demand and a reduction in overhead costs, analysts said.
“Last year’s merger of operations of LTP’s parent company Lanka Walltile PLC(LWL) and LTP has reduced the burden of overheads and other costs on both these companies,” Deshan Pushparajah, Assistant Manager Corporate Finance, Capital Alliance told the Business Times.
LTP’s sales (excluding exports) rose 11% to Rs 2.9 billion during the period ended March 31, 2009. The group managed to reduce its cost structure by 9% year on year to record Rs 866 million as the gross profit. Analysts said that the company's factories operate at approximately 95% capacity and LTP commands approx 30% market share in the domestic market.
LTP saw its finance cost decline by 32% year on year to Rs 53 million, enabling profit before tax to rise by 24% to Rs 487.8 million. Thus, net profit has increased by 34% year on year to Rs 378.5 million.
Jaliya Wijeratne, Director Institutional Sales SMB Securities said that the market is very positive on the tile and ceramic sectors for the next one or two years with the domestic demand taking up most of the output. |
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