Laxapana Batteries records Rs 3m profit in 1Q

Laxapana Batteries PLC a quoted company recorded a net profit of Rs. 3m for the first quarter of current financial year 2008/09 against a loss of Rs. 3.7m for the corresponding period recording an appreciable increase of 181%.

The company which has recorded net profit continuously for four years from the year 2004 up to 2006/07 incurred losses in the previous year due to the sharp increase in world commodity prices including Zinc mainly used by the company as a raw material.

It is significant that the net profits recorded during the year 2003/04 amounted to Rs 263m. The company one of the oldest manufacturing factories which commenced business in 1956, manufacture dry cell batteries and also franchises its brand name Laxapana to market products such as pentlight batteries, presently imported.

The company has stressed the need for diversification of operations for enhanced profitability.

The company has additional capacity of land and buildings for expansion and would study feasibility of manufacturing pentlight batteries and solar power units.