Touchwood net profit soars to Rs. 155 m

The Touchwood Investment Ltd which recorded a net profit of Rs. 163 m for the years 2004/05 has again recorded net profit of Rs. 155 m for the first half of current year 2005/06. The net profit recorded for the first half almost matched the net profit earned for the entire previous year.

The net profit earned represents 107% growth compared to Rs. 74 m earned for the corresponding period. The revenue has increased from Rs. 198 m to Rs. 427 m which in an increase of 115%. The earnings per share has increased from Rs. 67.22 to Rs. 139.26.

Annualised net profit of Rs. 310 m as at September 30, 05 would show an annualised earning per share of Rs. 139. However subsequent to the 3 for 1 bonus current EPS is Rs. 34.8 on the basis of diluted capital of Rs. 88 m, a company release said.

The company's core business is growing trees that are commercially viable and environmentally friendly providing a sound investment opportunity for investors. The total area under plantation is 923 acres up from 550 acres last year.

At present the company's main focus is on mahogany, vanilla and sandalwood plantations. The company has 18 forest locations covering various parts of the country and 287,000 trees have been planted as at March 31, 2005. The Touchwood Company is part of Touchwood Group now in operation in Dubai, Thailand and Hongkong.