Wednesday, June 29, 2011

Asia Wealth upbeat on Laugfs future earnings

Asia Wealth Management Ltd. is upbeat on future earnings of Laugfs Gas Ltd., on the back of improved performance in financial year ended on 31 March 2011.

In an earnings research report, Asia said Laugfs recorded an impressive gain of 90% for cumulative four quarters of FY11, registering a net earnings of Rs. 1,003 m. It recorded a revenue of Rs. 7,303.9 m for cumulative 4QFY11, which is a 31% increase, relative to the previous year.

The 4QFY11 depicts 27% growth in top-line to reach Rs. 1,983.5 m, which was majorly owing to strong demand for LP gas during the period. Since the company plays a significant role in the industrial bulk gas segment, growth in the leisure and manufacturing industry supported the improvement in top line.

“Forecasted FY12E earnings would remain at Rs. 1,183.3 m whilst we expect FY13E earnings to move up to Rs. 1,602.7 m supported by accelerated growth prospects, mainly in the domestic LP gas segment. Meanwhile, we anticipate the top line to reach Rs. 9,926.3 m in FY11E and Rs. 11,790 m in FY12E respectively,” Asia Wealth Management added.

source - www.ft.lk

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