While consolidated post-tax profit dropped sharply at Haycarb PLC group for the first quarter of the 2017/18 financial year, post-tax profit from the company showed a phenomenal 101 per cent rise to Rs. 172 million (2016-17 quarter: Rs. 84 million). According to the results available on the Colombo Stock Exchange (CSE) website, Haycarb’s consolidated post-tax [...]

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Mixed fortunes at Haycarb PLC

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While consolidated post-tax profit dropped sharply at Haycarb PLC group for the first quarter of the 2017/18 financial year, post-tax profit from the company showed a phenomenal 101 per cent rise to Rs. 172 million (2016-17 quarter: Rs. 84 million).

According to the results available on the Colombo Stock Exchange (CSE) website, Haycarb’s consolidated post-tax profit fell to Rs.121,061 million for the quarter ending June 30, 2017, a 40 per cent drop from Rs. 203,451 million recorded in the same quarter last year.
Consolidated revenue rose to Rs. 3.3 billion against Rs. 3 billion in the same quarters while company revenue rose to Rs.1.5 billion against Rs. 1.2 billion last year, according to the unaudited results posted on the CSE.

Meanwhile a media release issued by the company after the results were posted on the CSE, quoted Haycarb PLC Managing Director Rajitha Kariyawasan as saying that while the company’s initiatives to increase throughput and the value added portfolio together with the geographical expansion of export markets contributed to the growth in turnover, the challenges faced in Indonesian operations due to the shortages in raw material supply and resultant high prices and the increases in charcoal prices in Sri Lanka, India and Thailand negatively impacted the group’s profitability.

“Shortages and price increases in coconut shell based charcoal supplies are expected to continue through the current financial year in all the key coconut producing countries in Asia. The challenge in passing its full cost impact to end customers is a major concern to maintain activated carbon business’ expected margins through the year. The company is in the process of reviewing its prices to pass on a fair part of this impact to its customers after extensive discussions. Central and country specific management teams are working aggressively to ensure a secure supply chain in the current adverse situation whilst focussing on controlling costs and improving efficiencies through the lean manufacturing platform. Haycarb’s reputation to manage difficult supply chain issues effectively, without interruption of deliveries to its valued customers is well demonstrated by example in the past,” he has said.

The same release said that in the background of increasing emphasis on environmental sustainability worldwide, Haycarb remains positive in its medium to long term outlook in its activated carbon and water treatment systems businesses.

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