profit tops Rs 1 bln at 3Q, gets activated plant in Indonesia
The Hayleys conglomerate, which just reported a Rs 1.03 billion
profit after tax for the nine months ending December 31, 2004, has
acquired an activated carbon plant in Indonesia, and is going ahead
with plans for another in the same country, as well as a rubberised
coir plant in China.
already taken on lease purchase an activated plant in Sulawesi,
Indoensia which is operational," Hayleys chairman Rajan Yatawara
told The Sunday Times FT. "We have the option of buying it
in six months and are doing due diligence studies. We are hoping
to put up another plant in Sumatra."
would mean that the conglomerate's coconut shell charcoal-based
activated carbon subsidiary, Haycarb, would eventually have five
plants - one in Thailand, two in Indonesia and two in Sri Lanka.
is also setting up a rubberised coir plant in China as a joint venture.
"We're now trying to organise the land in China," Yatawara
said. "We'll be supplying machinery from here and import fibre
from here or from the joint venture we hope to set up in Indonesia
for making fibre."
has also struck a deal with Calgon Corporation of the US, a dominant
player in the activated carbon industry, and through which it sells
its products in the US.
is not in the form of an alliance but an exclusive purchase and
supply agreement which would be almost like an alliance," Yatawara
said. In results released to the Colombo Stock Exchange last week,
the blue chip reported strong growth in turnover and pre and post
tax profits at the end of the third quarter.
said in a statement it expects strong performance for the year,
despite the appreciation of the rupee against the US dollar in the
final quarter. Group turnover grew 25 percent to Rs 13.9 billion
and pre-tax profit was up 57 percent to Rs 1.3 billion, with profit
attributable to shareholders up 56 percent to Rs 573 million.
said these figures are consistent with the group's anticipated performance
for the first three quarters of the year and reflect particularly
significant growth in the rubber, transportation, inland marketing
and plantations sectors.
big increase in contribution from the transportation was partly
from one of the container ships that Hayleys has acquired through
its subsidiary Hayleyslines. Yatawara said prospects for shipping
look good given strong charter and freight rates.
acquisition of the second container vessel last year will positively
impact future earnings for the group, along with activated carbon
plants in Sulawesi and Sumatra and the new fibre extraction facility,
also in Indonesia.
fourth quarter has historically seen the strongest growth for the
group. We expect a strong performance this year as well," Yatawara
said in the statement, commenting on the prospects for the year.
However, the appreciation of the rupee against the dollar in January
this year, will see the group falling short of a targeted Rs 1 billion
in profit attributable to shareholders for the year, he cautioned.
Dipped Products (DPL) Group subsidiary, comprising rubber glove
manufacturing and marketing and plantations, has already reported
an 81 percent growth in net profit for the period under review.
The share of pre-tax profits from Group associates grew 22 percent
to Rs 180 million, with associate companies in the textile, inland
marketing and plantation sectors being notable contributors.
also said that the Board of Directors of Hayleys Limited had recommended
a bonus issue of 4:11, departing from the usual practice of issuing
rights at a heavily discounted price. The bonus issue reflects an
anticipation of dividends in line with the group's improved performance
as well as the company's ability to service a higher level of capital
in the future, he explained.