Consolidated earnings stood at Rs. 588 million for the first six months of the year, a notable growth of 85 percent over the previous year. Improved profitability in most businesses resulted in significant margin improvements, with the group operating margin increasing from 8.4 percent to 10.3 percent, and the net margin increasing from 4.3 percent to 6.8 percent.
"Hemas Power experienced an impressive first half, recording a revenue of Rs. 1.6 billion, a growth of 17 percent year-on-year and earnings of Rs. 153 million, compared to Rs. 4 million achieved last year. Our hydro power plants in Giddawa and Agra Oya have contributed a total of 10.1Gwh to the national grid, whilst our thermal power plant Heladhanavi, contributed 345.1Gwh during the six months ending September 2010," Esufally said.
"The hydro power plants showed an increase in performance over last quarter as a result of healthy rainfall in both catchment areas and higher tariffs in comparison to the previous year. Heladhanavi revenues were enhanced by the pass-through effect of increasing fuel prices that were revised upwards on 1st September 2010. Significant reductions in finance costs due to repayment of the syndicate loan and reduced interest rates boosted sector earnings, while the absence of the high overhaul charge in comparison to last year further augmented the sector’s performance," he said.
The FMCG sector showed a growth in turnover of 8 percent, recording Rs. 2.9 billion, and a marginal drop in earnings of 5 percent recording Rs. 294 million for the period under review. "Most categories in our FMCG portfolio contributed positively to the growth in the sector revenue. However the sector gross margin suffered a marginal drop mainly due to the impact of a new CESS levied on some of our imported material," Esufally said.
The Healthcare sector recorded a turnover of Rs. 3.1 billion, a growth of 30 percent year-on-year, and earnings of Rs. 122 million in comparison to Rs. 62 million recorded last year, reflecting a growth of 97.8 percent. "The pharmaceutical business performed beyond expectations, with a 27 percent growth in top-line while strengthening its market leadership position with a market share of 16.4 percent. Our flagship hospital in Wattala continued to improve its performance, achieving cash break-even position in May 2010 and was the main contributor to the growth in the hospitals category, which posted a revenue growth of 57 percent," Esufally noted.
The Leisure sector achieved revenues of Rs. 489 million in comparison to Rs. 341 million the previous year, and reduced its loss to Rs. 8 million in comparison to the loss of Rs. 37 million recorded the previous year. Esufally said, "In August, our hotel subsidiary, Serendib Hotels PLC acquired 19.9% of Cyprea Lanka (Pvt) Ltd, which owns Kani Lanka Resort & Spa. The balance, 80.1% was acquired by Minor International, our hotel partner. All our hotels continue to benefit from the positive outlook of the country in the post war scenario and are currently enjoying higher occupancy levels compared to last year with both Serendib and Dolphin hotels recording average occupancy rates in excess of 70 percent during summer. Revenue of the Serendib Group was impacted by the partial closure of Hotel Dolphin, which reopened in October 2010 after completion of its upgrade at a cost of Rs. 530 million."
The Transportation sector recorded revenues of Rs. 374 million, in comparison to Rs. 332 million achieved last year, and earnings of Rs.133 million, resulting in a year-on-year earnings growth of 46 percent. "While the overall industry grew in terms of passenger and cargo volume, our aviation segment grew at a faster growth trajectory. This contributed to both a significant improvement in performance as at the end of September 2010 and further strengthened our market share in the aviation services industry. Our maritime business benefited from both enhanced maritime services and increased volumes through the Port of Colombo."
source - www.island.lk
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