Bogala Graphite releasing its latest annual report said, the company has recorded the highest ever net profit in the financial year 2010, since the company was privatized in the year 2000.The only listed graphite mining and exporting firm, releasing its annual report for 2010 said, it recorded a net profit of Rs.70 million against a net loss of Rs.127 million in the previous year. The Earnings per Share (EPS) was Rs.1.49 against a loss per share of Rs.2.70 of the previous year.
According Chairman Vijaya Malalasekera, increased demand for high grade graphite products, reduction of costs by way of a Voluntary Retirement Scheme and a collective agreement with the employees contributed towards this turnaround.
"Sales increased by 57 percent. Our finance costs reduced considerably during the period under review, from Rs.50 million to Rs.16 million. This was made possible by the loan obtained from our parent company at lower interest rate to pay short-term overdraft facilities" Malalsekera said.
Company's profitability was also boosted by an exchange gain of Rs.30 million that had occurred as a result of the loan it drew from the parent company, Graphit Kropfmuhl in Euro terms at the end of 2009.
According to Malasekera, the future appears to be more positive consequent to the recovery of global conditions.
source - www.dailymirror.lk
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