Swisstek to increase capacity
Swisstek Aluminium PLC is gearing to expand its 450 metric tonnes (MT) capacity to 1,000 MT within three months in a bid to cater to the greater demand, officials say.
“The total demand now for aluminium is 2,500 MT for a month. So there’s a lot of scope,” an official told the Business Times. This Lanka Tiles PLC subsidiary intends to fulfil more than half this demand, he said. He added that the company would continue to see demand assisted by the rapid infrastructure development in the city.
World LPG prices and aluminium prices are on the rise this year. The increase in aluminium prices affected the bottom-line of Swisstek Aluminium during the last quarter. Swisstek Aluminium profit before tax dipped (6.2 per cent in Q3 FY 17) for the first time since three years due to higher aluminium prices eroding margins for the quarter.
Meanwhile, owing to the increase in distribution cost and taxation, (taxation increased to Rs. 221 million from Rs. 12 million posted in Q3 FY 16 which was a deferred tax reversal) Swisstek’s parent company, Lanka Tiles’ bottom line declined to 26 per cent for the quarter from 27 per cent (Q3 FY 16).
Lanka Tiles gross revenue increased 3.3 per cent Year on year for the first time in FY 2017 after the company’s local sales were affected from floods and a change in their production mix in Q1 and Q2 FY 17.
The official said that Lanka Tiles’ export sales have seen a good growth in Australia and North America. The company is also currently importing from Indian tile manufacturer, Ambani Vitrified Ltd to cater to the local demand.