The bulk of profits came from the investment and services business sector of the group, which said it plans to enter a new business in property development.
Group turnover, from portfolio management activities, rose 10 percent to 374 million rupees.
The results showed a sharp increase in other operating income to 114 million rupees from six million a year ago consisting of 88 million rupees at group level arising from "mark to market valuation of short term investments."
Renuka Holdings Group had short-term investments in the share market of 575 million rupees, a stated capital of 125 million rupees and accumulated profits of 1.2 billion rupees.
Sri Lanka's share market has hit record highs in recent weeks, becoming the world's second best performing bourse, until the bull-run was halted by a daily price band imposed by the regulator to curb speculation that led to unusual price hikes and trading volumes.
The bull-run was driven by post-war optimism and improving company earnings after the island's 30-year ethnic war ended in May 2009.
A Renuka group statement attributed the results to "strong performances by the Group’s agribusiness, investment and service sectors."
Its listed subsidiaries include Coco Lanka and Renuka Agri Foods which export mainly coconut products.
The company said it plans to enter property development using land it owns in the capital Colombo.
“We will soon embark on our third sector which will see us entering the property development and leisure areas by utilising 1.6 acres of freehold property that the company owns in Colombo," chairperson Indu Rajiyah said in a statement.
"In the context of declining interest rates on borrowings, improved investor confidence, stable exchange rates and Sri Lanka’s overall improved rating outlook, we believe this project would contribute a significant income stream in the years ahead."
Renuka Holdings is engaged in plantations, manufacturing and exporting of Ceylon tea, coconut products, ethnic and organic foods as well as forestry, logistics and portfolio management.
source - www.lbo.lk
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