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Monday, August 29, 2011

DCSL records remarkable turnaround

Ramani Kangaraachchi

The Distilleries Company of Sri Lanka (DCSL)’s diversified businesses recorded a remarkable turnaround to show a profit of Rs 237 million. DCSL posted a turnover of Rs 47 billion in 2010/11, which marks an increase of 17 percent over last year. The Group’s net profit after tax of Rs. 8.3 billion represents a three fold increase over the corresponding period last year according to DCSL Chairman Harry Jayawardena.

However, this includes a capital gain on disposal of shares of Rs 3.9 billion. Thus, profit earned from core businesses amounts to Rs. 4.4 billion which is an increase of 105% despite many challenges. The textiles arm recorded a 14.8% increase in turnover compared to the previous year. The garment industry seems poised for a turnaround in the months ahead.

Referring to the performance in the plantation sector he said the sector has recorded a profit before tax of Rs. 220 million which is a remarkable growth of 124% over 2009.

This achievement is commendable given the increases in the cost of input material and wages. The tea production of the company reached a record high while the rubber sector enjoyed a buoyant market throughout the year, in 2010 in turnover compared to the previous year.

The telecommunication sector also rebounded to post a cumulative net profit of Rs. 113 million during the last financial year. There has been an overall reduction in voice revenues during the year ended March 31, 2011, earnings from broadband, base station sharing and the introduction of the interconnection regime have made up for the loss.

However, substantial revenue growth is expected from the broadcast business with network expansion to the North and the East.

Looking at the power sector, construction work on the mini hydropower plant is expected to be completed in 2012.

The future plan is to reduce the dependence on sugar imports to the country contributing to the growth of the indigenous sugar industry through the backward integration. Jayawardena said the Groups’ growth areas are aligned with the nation’s need and it will continue to explore opportunities in sectors that need to be developed further as the country prepares to build a maritime and warehousing hub.

“The dividend payment to shareholders has been increased from Rs 2.50 to 3.00 per share as the market price range has increased from Rs. 117 to Rs. 197,” he said.
source - www.dailynews.lk