Dankotuwa Porcelain earns modest profits

Ravi LADDUWAHETTY

Top tableware exporter Dankotuwa Porcelain Ltd has made a modest turnaround profit for the year 2008 of Rs. 700,000 on a turnover of Rs. 1.3 million after the losses of Rs. 129 million on a turnover of Rs. 1.075 billion in 2005 and a loss of Rs. 400 million on a turnover of Rs. 1.2 billion for 2006.

The reason for the staggering loss for 2006 has been the removal of a Rs. 350 million kiln, which was imported, but not being used from the books. The reason for the turnaround has been the using of new designs and marketing strategies.

The First Quarter 2008 results will be released to the market after the Board Meeting on Wednesday.

The company has also generated new markets in Germany, Egypt and the Czech Republic that are expected to significantly improve the bottom line.

“We are happy with the resilience of the US market, the largest importer despite recession. We have had no cancellation of orders there,” Dankotuwa Chairman/Managing Director Sunil Wijesinha said. “The South Asian market was improving with the opening of the Chennai showroom and with franchise outlets in New Delhi and Lahore.

There will be increased supplies to the Indian market from two containers a month currently to three. Lahore is also expected to improve with the settlement of the volatile situation there,” he said.