Thursday, April 21, 2011

Surging rubber, tea prices boost Free Lanka profits

By Jithendra Antonio

Being the first to release its interim results for the quarter ended in March 31, 2011, the new kid on the bloc, Free Lanka Capital Holdings (FLCH) said their profits were up by 189 percent to Rs.103 million, against the same period last year.

Accordingly, earnings per share has shot up to 10 cents from earlier 0.04 cents in 2009. Meanwhile, profits fort the financial year 2011 has risen up by 515 percent to Rs.493 million. Earnings per shares rose to 46 cents during the year from 09 cents the year before.

According to the segmental analysis, most of the profit came from its rubber and tea estates which have benefited from surging commodity prices. The company grows tea and rubber, managing Maturata and Pussellawa Plantations, in addition to generating hydropower.

According to the interim reports, the yearly profits of the Free Lanka were boosted by fair value gains on the company’s timber stocks, which were up 29 percent to 307 million rupees.

The biggest contribution to annual profit came from rubber plantations, which reported pre-tax profits of Rs.999 million through sales amounting to Rs.1.7 billion, compared with a profit of Rs.310 million the year before.

The company’s tea business made a pre-tax profit of Rs. 253 million through Rs. 4.6 billion sales, compared to a loss of Rs. 19 million the previous year. Hydro power made a profit of Rs. 91 million, up from Rs. 2.6 million.

source - www.dailymirror.lk

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