Sri Lanka graphite firm net up 11-pct

Nov 22, 2012 (LBO) - Sri Lanka's Bogala Graphite, a unit of Germany's Graphitwerk Kropfmuhl said profits rose 11 percent to 16.8 million rupees in the September 2012 quarter, amid a surge in revenues and gross profits.

 The firm reported earnings of 36 cents per share in the quarter. For the nine months to September the firm reported earnings of 63 cents per share on profits of 29 million rupees, which were dampened by a 28 million rupee forex loss.

 In the September quarter revenues rose 61 percent to 155 million rupees and cost of sales orse at a slower 43 percent to 104 million rupees allowing gross profits to surge 117 percent to 50 million rupees.

Bogala Graphite's distribution expenses rose from 10 to 17 million rupees and admin expenses to 13 million rupees from 9.4 million rupees a year earlier.

Last year September quarter profits were boosted by a 15.9 million rupee forex gain. The firm has a Euro denominated loan.

 In 2012 Sri Lanka's rupee, which is pegged to the US dollar, weakened to in the first half but gained slightly during the third quarter.

In the third quarter the firm reported 168,000 rupees in forex gains.

There has been renewed interest in mining and exporting Sri Lanka's vein graphite, which is supposed to be of high purity. Sri Lanka's Board of Investment has this year approved the setting up of two foreign invested graphite export firms.

source - www.lbo.lk