Hemas Holdings posts Rs 15.2 b revenue for 2009 -2010

Hemas Holdings PLC has recorded consolidated revenues of Rs 15.2b and net earnings of Rs 902m to equity holders for the year ended March 3, 2010. Hemas businesses have performed particularly well during the year, to deliver profits that have compensated for the startup losses and finance costs associated with new investments, to secure an overall earnings growth of 16 percent Hemas Holdings CEO Husein Esufally said.

Hemas Holdings CEO Husein Esufally

On March 31, 2010, Hemas Holdings shares closed at Rs 120, delivering total shareholder returns of 103 percent for the year under review and taking the market capitalization of the Group upto Rs 12.2b.

FMCG business also experienced a good year with net revenues crossing the Rs 5.2b mark, to post a top-line growth of 13 percent. Profits were up by 19 percent to close at Rs 636m.

The pharmaceutical distribution business too had a robust year growing revenues by 24 percent to Rs 4.5b and further strengthening its leadership position in the private sector with a 16.5 percent exit market share.

In the hospital sector both hospitals have enjoyed a steady build up of patient volumes and revenues closed at Rs 598m for the year under review. Capacity utilization has reached over 60 percent, he said.

Power Sector revenues dropped 45 percent during the year to close at Rs 2.8b. However, this decline is merely a reflection of the pass-through effect of lower oil prices in the thermal power operation that prevailed during the year.

On the other hand, profits have marginally decrease of 0.5 percent to Rs 245m, contributed to by additional revenue streams in the form of renewable energy, setting off the high-level of planned overhaul costs in the thermal plant that were incurred during the year.

In September 2009, Hemas Power successfully raised Rs 626m in equity through its initial public offering in order to raise capital for expanding our renewable energy portfolio through new developments and acquisitions.

In line with this plan, an operational mini hydro business with a capacity of 2.6MW was acquired for Rs 196m in December 2009, and the development of a 2.4MW plant in Upper Magal Ganga area was commenced in March 2010.

Hemas have embarked on an ambitious development plan that will include the repositioning of our existing properties, development of resorts on our undeveloped properties in Kandy and Tangalle and the acquisition of a strategic land bank for future development.

source - www.dailynews.lk