Hemas Holdings 1Q profits increase

COMPANY RESULT: For the quarter ended June 30, 2006 Hemas Holdings has achieved a revenue of Rs. 2.5 b and a profit of Rs. 217 m, reflecting a top-line growth of 12.3% and a bottom-line growth of 14.8 % as against the corresponding period of the last financial year.

Profit growth was mainly driven by the Healthcare sector which grew by 41%, and the turn around of the leisure sector, which posted a profit of Rs. 6 m for the quarter.

FMCG turnover has recorded a marginal increase whilst the profit have declined by 6% due to lower margins, mainly as a result of higher input costs on account of a stronger US$. Whilst most key Brands have grown, high levels of competition and increasing inflationary pressures make for a challenging year ahead.

The sector has progress its plans to set up dedicated foods/homecare and international business divisions, and the necessary operating structure are mostly in place.