Hemas posts best ever results in FY 2011

■ New sector Healthcare beats long standing FMCG biz in revenues and profit growth; Leisure bottom line triples

Diversfied blue chip Hemas Holdings Plc has achieved its best ever results in the financial year ended on 31 March, 2011, with net profit attributable to equity holders of Rs. 1.2 billion, up by 34% over the previous year.

Group after-tax profit was up 45% to Rs. 1.35 billion whilst profit before tax showing a similar percentage growth amounted to Rs. 1.56 billion as per provisional results for FY 2010/11 released on Friday.

Hemas’ previous best performance in 2007/8 financial year was with a bottom line of Rs. 1.13 billion and a post-tax profit of Rs. 1.15 billion. The FY 2011 performance the third time where the respective figures topped the Rs. 1 billion mark. The other occasion was in FY 2006/7.

Group revenue in FY 2011 had grown by 20.5% to cross the Rs. 18 billion  mark for the first time (as against Rs. 14.1 billion in the previous best year) whilst gross profit amounted to Rs. 5.83 billion, up from 14.4% over FY 2009/10.

The FY 2010/11 financial results had been supported by Rs. 108.3 million in other income and gains, up by 144% from Rs. 44.5 million last year as well as lower finance cost Rs. 297.7 million, down by 12.6% from Rs. 449.3 million a year earlier. Change in fair value of investment properties was down by 70% to Rs. 24.4 million in FY 2011.

The relatively new healthcare sector had in FY topped with revenue contribution surpassing Hemas traditionally strong Fast Moving Consumer Goods (FMCG) business in addition to achieving profit growth.

 Turnover from the healthcare amounted to Rs. 6.5 billion, up from Rs. 5.04 billion in FY 2010 whilst its pre-tax profit was Rs. 232.3 million, higher from Rs. 68.5 million. FMCG’s revenue was Rs. 5.79 billion, up from Rs. 5.24 billion but its pre-tax profits dipped to Rs. 520 million from Rs. 619 million in FY 2010.

Hemas leisure sector saw a total turnaround with revenue topping the Rs. 1 billion mark from Rs. 752 million, whilst pre-tax profit almost tripled to Rs. 147 million from Rs. 50 million. Transport sector continues to deliver steady performance with turnover up from Rs. 664 million to Rs. 734 million whilst pre-tax profit grew from Rs. 201 million to Rs. 251 million. Hemas Power saw its revenues grow to Rs. 3.37 billion FY 2011 from Rs. 2.84 billion in the previous year whilst pre-tax profit rose to Rs. 244 million to Rs. 428 million. The blue chips “Others” (sector) business though grew revenue wise to Rs. 1.08 billion from Rs. 905 million, suffered a loss of Rs. 122 million, but lower in comparison to Rs. 177 million loss in FY2010.

Hemas had a relatively healthy fourth quarter with top line up by a strong 32% to Rs. 4.96 billion and a gross profit of Rs. 1.48 billion, up by 12.7% over the fourth quarter of 2009/10 financial year.  However its pre-tax profit grew by only 3% to Rs. 446.8 million whilst post-tax profit dipped by 1.3% to Rs. 380.5 million and net profit attributable to equity holders declined by 7.7% to Rs. 311 million in 4Q.

In July 2010, the company exercised a sub division of ordinary shares in the proportion of 5:1 whilst Hemas also issued ESOS 2008 2nd tranche of 2,250,000 ordinary shares on 27 December 2010 at Rs.44.09 per share for Rs.99 million.

Hemas had finished the FY 2011 with an earning per share of Rs. 2.36, up from Rs. 1.76. The Board of Directors has proposed a final dividend of Rs.0.25 per share for the financial year ended 31 March 2011.  In November 2010 an interim dividend of Rs.0.25 per share was paid for FY 2011. Net asset per share was Rs. 17.33 and Rs. 11.33 at Group and Company level up from Rs. 11.33 and 11.23 respectively a year earlier.

Group assets as at 31March, 2011 topped the Rs. 19 billion mark to amount to Rs. 19.2 billion, up from Rs. 16 billion a year earlier. That of the company was Rs. 7.12 billion, as against Rs. 6.82 billion as at 31 March, 2010. Shareholders’ Funds amounted to Rs. 8.87 billion at Group level and Rs. 5.8 billion at Company level, up from Rs. 7.6 billion and Rs. 5.7 billion respectively a year earlier. This included Rs. 6.3 billion in retained earnings for the Group and Rs. 4 billion for the Company as at end FY 2011.

Hemas Group short term liabilities amounted to Rs. 6.57 billion, up from Rs. 5.3 billion whilst long-term liabilities rose to Rs. 2 billion from Rs. 1.5 billion.

During FY 2011 Hemas market capitalisation almost doubled to Rs. 23.5 billion, from Rs. 12.2 billion in the previous year. Hemas had also drawn several new foreign investors reinforcing itself as a solid and attractive blue chip. India Subcontinent Fund of First State Investment had taken up a near 2% stake whilst its Asia Pacific Sustainability Fund had picked up 1.2% apart from First State Global Umbrella Fund retaining its 1.1% stake in tact. Public holding of Hemas as a percentage of number of shares in issue is 28.

Hemas Holdings Board of Directors comprises Lalith De Mel (Chairman), Husein Esufally (CEO), Imtiaz Esufally, Murtaza Esufally, Abbas Esufally, Maithri Wickremesinghe, Pradipta Mohapatra and  Divyaroop Bhatnagar.

Hemas invests

Established in 1974, the Australian Council on Healthcare Standards is Australia’s leading healthcare accreditation provider delivering accreditation and quality improvement programmes throughout the world.

Hemas Healthcare sector in 2010/11 financial year enjoyed a Rs. 6.57 billion revenue up from Rs. 5 billion in the previous year. Pre-tax profit was Rs. 345.2 million, up from Rs. 156.6 million.

Hemas invests Rs. 121 m in healthcare subsidiary

Hemas Holdings has invested Rs. 121 million in Hemas Hospitals on 31March, 2011 following the exercising of the healthcare venture’s Rights Issue.

Hemas Hospital later this week will announce the achievement of being the Sri Lanka’s first to get Australian Council on Healthcare Standards International (ACHSI) Accreditation Certificate.

Established in 1974, the Australian Council on Healthcare Standards is Australia’s leading healthcare accreditation provider delivering accreditation and quality improvement programmes throughout the world.
Hemas Healthcare sector in 2010/11 financial year enjoyed a Rs. 6.57 billion revenue up from Rs. 5 billion in the previous year. Pre-tax profit was Rs. 345.2 million, up from Rs. 156.6 million.

source - www.ft.lk