Lanka Aluminium Industries records Rs.32 m PAT in 2008/2009
Highlights
* Castalloys records Rs.8 million after-tax
profit
* Classic Teas - net profit Rs. 9 million
* Company to realize its full potential in
years to come
All subsidiaries of Lanka Aluminium Industries PLC enabled the group
to post a pre-tax profit of Rs.50 million in 2008/2009 after adjustment
for the inter-group dividend compared to the previous year of Rs.74
million and a profit after tax of Rs.32 million compared to Rs.40
million in 2007/2008.
Castalloys (Pvt) Ltd., a fully owned subsidiary of the Lanka
Aluminium Industries PLC, which manufactures aluminium castings
performed better than last year and recorded a profit of Rs.13 million
before tax compared to Rs.8 million the previous year, an increase of 62
percent while the profit after tax was Rs.8 million.
The crashing of world aluminium prices and consequently high-priced
stockholdings together with the sudden reduction in demand affected
profitability from August 2008, said Lanka Aluminium Industries PLC,
Chairman, S.T. Nagendra in the annual report 2008/2009.
Lanka Aluminium Industries PLC's turnover dropped by 8 percent to
Rs.660 million compared to Rs.716 million last year. Pre-tax profits
also dropped by 50 percent from Rs.58 million in 2007/2008 to Rs.29
million in 2008/2009.
The global economic downturn worsened by July 2008, with the collapse
of US lending institutions and the drastic decline in commodity prices.
Aluminium prices too fell from US$ 3,000 in August to US$ 1,200 by
October 2008.
Classic Teas (Pvt) Ltd., performed well recording a net profit of
Rs.9 million compared to Rs.4 million in the previous year.
The company expects a further improvement in performance in the
future, he said.
Comark Lanka (Pvt) Ltd., performed poorly in the year due to the lack
of demand and posted a net profit of only Rs 0.9 million.
Considering all factors and the world situation, the company has
performed quite acceptably which enabled it to recommend a first and
final dividend of Rs.0.75 per share for the year ended March 31, 2009.
The state of the global economy is still uncertain and the short-term
outlook remains poor, he said.
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