Singer: Increased interest rates major concern for allView(s):
The Singer Group’s recently released results showed that it continued its growth momentum though there was concern over rising interest rates. The 2012 first half revenue increased 23% over the prior year and 2012 first half net profit increased by 21%. The group revenue for the first half was Rs. 12.6 billion and net profit was Rs. 680 million, the company said. “The Group’s results in the first half were impressive considering that they were achieved despite a volatile economy and negative consumer sentiments following the sharp rupee devaluation and sharp increases in interest rates, electricity costs, and fuel prices,” it said.
Singer Sri Lanka Group CEO, Asoka Pieris noted that the increase in interest rates was “a major concern to all in the business sector.”
The Average Weighted Prime Lending Rate had soared dramatically from 9.4% a year ago to 13.8%. He pointed to the lower taxes in the current year as a key factor in the improvement of after-tax profits for both the group as well as the company.
Sales of Microwaves increased by 510% compared to the same period of the previous year while sales of Irons rose by 141%. Other product categories which enjoyed significant growth were Refrigerators (27%), Domestic and Artisan Sewing Machines (16%), Fans (59%), Air Conditioners (34%), Kitchen Appliances (42%), Rice Cookers (99%), Water Pumps (29%), and Bicycles (41%), the company statement said.
Singer said it was successful in launching a number of new product lines and models with high growth in categories such as Cameras, Mobile Phones, Water Purifiers, Sprayers, Induction Cookers, Gas Cylinders, Air Coolers, and Blu Ray players.
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