Sri Lanka Stock Picks

Sri Lanka stock picks site has been developed to give first hand information with regard to share trading opportunities available for investors who do not like go through lengthy research reports, calculations,etc but to have a clear idea about stocks that have future up side potential.Our service is just not for day traders but for the investors who wish to see their money growing in the long run.Our main objective is to provide information relating to trading under one roof.

Monday, February 28, 2011

Sri Lanka Dockyard Dec net up, annual profit dips

Feb 28, 2011 (LBO) - Colombo Dockyard's December 2010 quarter net profit more than doubled to 739 million rupees from a year ago despite flat sales while annual profits fell as repair work suffered from competition, a statement said.

The Sri Lankan listed ship builder's December 2010 quarter net was up 123 percent compared with the same quarter a year ago although sales were flat at 3.7 billion rupees, according to a stock exchange filing.

The yard, which books profit on vessel delivery, delivered the second of a pair of passenger vessels for an Indian government customer in October and had warned profitability could dip this year owing to the effects of recession and growing competition.

Earnings per share for the December 2010 quarter at Colombo Dockyard, a unit of Japan's Onomichi Dockyard Company, rose to 10.80 rupees from 4.85 rupees the previous year.

Colombo Dockyard revenue from ship repair fell sharply to 974 million rupees in the December 2010 quarter from 1.6 billion rupees the previous year while revenue from ship building shot up to 2.7 billion rupees from 1.9 billion rupees.

In the financial year ending December 31, 2020, net profit fell 3.3 percent to just over two billion rupees from the previous year while sales rose 7.5 percent to 14.5 billion rupees.

Annual earnings per share were 30.40 rupees compared with 31.45 rupees in 2009.

Revenue from ship repair fell sharply to 4.2 billion rupees in the 2010 financial year from 6.7 billion rupees the previous year while revenue from ship building shot up to 9.6 billion rupees from 5.6 billion rupees.

In October, when the yard delivered the passenger ferry for India's Lakshadweep islands, managing director Mangala Yapa had warned profitability could dip this year owing to the effects of recession and growing competition.

Yapa said the yard's order book for new buildings was full but it faced tough competition especially from Chinese yards in the repair business.

Dockyard's accounts showed that the Employees Provident Fund had increased its stake in the firm to 14.5 percent, making the pension fund managed by the state the yard's second biggest single shareholder.

State-run Sri Lanka Insurance Corporation had also raised its stake with its life fund and general fund holding to 10 percent of Dockyard, making it the third largest shareholder.

source - www.lbo.lk