Sri Lanka's Renuka Holdings has posted 150% and 85% year-on-year increases in consolidated revenue for the three months and nine months to end-December 2010 respectively, with the former growing to Rs. 1.16 billion and the latter to Rs. 2.26 billion.
However, revenue gains were offset by even greater rises in consolidated cost of goods numbers for both periods, to the tune of 246% and 112%, respectively. This resulted in consolidated gross profit for the three months to end-December 2010 dropping year-on-year by 26% to Rs. 121.77 million, with the same line item gained year-on-year by 30% to Rs. 513.12 million for the nine months to end-December 2010, the group said.
It showed a loss after tax for the three months to end-December 2010 of Rs.32.84 million, a fall of 79% from the year before. Additionally, there was a consolidated profit after tax for the nine months to end-December 2010 of Rs. 649.29 million, an increase of 61% year-on-year.
Also, profitability for the three months to end-December 2010 was negatively impacted by year-on-year decreases in the ‘other income’ (51%) and ‘mark-to-mark value adjustment’ (179%) line items in the income statement. However, profits for both of these line items in fact increased by 73% and 51% year-on-year, respectively, over the course of the nine months to end-December 2010.
Financials also revealed that, segment-wise, profits for the nine months to end-December 2010 were largely due to investment and services while a smaller portion came from Renuka's agri-business unit.
According to the group's chairperson, Indumathi Renuka Rajiyah, who was quoted in the financials; "Company profit after tax grew to Rs. 347.7 million compared to Rs. 236.1 million in the corresponding nine months of last year while group profit after tax was Rs. 649.2 million.”
Ms. Rajiya also revealed the group "continued taking advantage of market opportunities, investing in listed shares, investing in unquoted equity positions and debt instruments. Its total investment portfolio was Rs. 1.3 billion of which 42% was classified as short term investments and 58% as long term investments." Financials also showed share acquisitions to the tune of Rs.156.32 million.
She also added that its "investment portfolio also consists of Biological assets and in this regard the group continued planting teak and mahogany." And concluded by suggesting that one of two projects the group had previously slated for property developent and leisure had passed through its project feasibility study phase and was going ahead utilising a "mixed" development concept, all that was pending was a finalised project time line. Meanwhile, financials also indicated property investments of Rs. 214.23 million. Additionally, according to prior media reports, the group already has 1.6 acres in Colombo and 23 acres in the North and East. |
E-mail
