Lanka Walltiles enters Oman, eyes the Gulf
View(s):Lanka Walltiles PLC (LWL) has secured 100,000 square metres of wall tile orders in Oman, and is looking to expand into that region with similar orders, officials said.
“We now have a firm foothold in Oman and will scout for more such market in the Gulf region,” an official told the Business Times.
The tile sector performance would remain the key revenue driver of group revenue, according to the official. He said that Lanka Tiles, LWL’s subsidiary contributes a larger proportion of group revenue. Lankan Tiles entry into the Indian market is expected to yield results toward the end of FY 2015E, he said, adding that this calendar year Lanka Tiles will do a US$ 1 million contract in India. “We started supplying to a major property supplying developer in India and this order is worth nearly $500,000.”
LWL’s group revenue grew 13.8 per cent year on year (YoY) in Q1 FY 15 to Rs. 2.97 million aided by all three sub segments (tiles, plantations and packaging). Lanka Walltiles and associated items (Lanka Tiles, LWL and Parquet) collectively contributed to 64 per cent of group revenue. Along with top line growth, decline in direct costs in Lanka Tiles and LWL and the decline in finance cost by 41.4 per cent helped boost profitability in Q1FY15 to Rs. 193 million in comparison to a loss of Rs. 59 million.