Lanka Walltile posts Rs. 122.5 m profit for 2005

COMPANY RESULT: Lanka Walltile Limited has posted an all time high profit of Rs. 122.5 million after tax for the financial year ended March 21, 2006. This reflects 136% increase over 2005.

The LWL Group which includes amongst others Lanka Walltile Meepe (Pvt) Limited, its fully owned subsidiary and Lanka Tiles Limited in which it has majority holding posted a profit after tax of Rs. 472.9 million against Rs. 374 million last year a 26% increase.

Turnover increased from Rs. 701 million in 2005 to Rs. 781 million for the company, a 11% increase and a 17% growth for the Group from Rs. 4.2 billion in 2005 to Rs. 4.9 billion this year.

Lanka Walltile Limited together with its fully owned subsidiary Lanka Walltile Meepe (Pvt) Limited posted a record Rs. 186 million profit for the same period after tax. This is the highest ever achieved during its operations.

Profit for the company from operating activities increased from Rs. 75.1 million last year to Rs. 142.5 million in 2006, a 90% growth whilst the group registered a 33% growth from 577.8 million in 2005 to Rs. 762.8 million in 2006 for the Group.

Direct taxes on the group increased from Rs. 102 million in 2005 to Rs. 165.8 million this year registering an increase of 62% whilst the company 's taxes reduced from Rs. 5.8 million to Rs. 4.2 million,

Earnings per share increased from Rs. 1.87 to Rs. 4.40 for the company and from Rs. 7.28 last year to Rs. 9.78 in 2006 for the Group.

The company generated a healthy cash flow of Rs. 137 million from operations and the group posted Rs. 939 million emphasising a phenomenal growth in the cash flow of the company.

Arising out of this exceptional performance and the need to meet increasing market demands, a company source indicated that they were now in the process of going in for an expansion which would double their capacity at the Meepe factory.

The only constraint being the political stability of the country, which if adversely affected could have a retarding effect on the local building/construction industry.