Renuka Holdings posts strong 1h profit growth

Renuka Holdings Plc recorded a noteworthy turnover and profit growth for the six months ending September 30, 2009.

While Group Turnover for the period reviewed grew to Rs. 758.97 million and total assets of the Group increased to Rs. 1.96 billion as at September 30, 2009, earnings per share increased to Rs. 11.26 for the six months of 2009-10 while net assets per share grew to Rs. 123.50. These impressive financial results have been attributed to strong performances by the Group’s Agri Business and Investment and Service sectors.

In results released to the Colombo Stock Exchange, the company - whose subsidiaries are Renuka Agro Exports Ltd (plantations, manufacturing, global marketing), Renuka Developments Ltd (investment property), Renuka Enterprises (Pvt) Ltd (forestry, logistics, tourism and real estate) and Coco Lanka Plc - reported that profit after tax was Rs. 34.04 million compared to Rs. 4.7 million in the corresponding six months of last year. Group profit after tax was 151 million, with Rs. 84.5 million attributable to shareholders of Renuka Holdings PLC.

In the Company’s Operations Review, Executive Director, Shamindra Rajiyah said “We are confident of reaping the peace dividend, where the group hopes to make full use of the positive opportunities arising; such as sharply declining inflation and interest rate on borrowings, improved investor confidence, stable exchange rates and Sri Lanka’s overall improved rating outlook.”

The review said that a large share of the group’s revenue is generated in global markets, where there is now significant interest from the organization’s long standing principles to partner the company in various projects in Sri Lanka.

The group has an unutilized land bank in Colombo, and the Eastern and the Northern provinces, where plans are now under way to commence revenue generating businesses.Rajiyah said, “RHL continued to invest in listed shares by taking advantage of the subdued market conditions at the beginning of the financial year. As at September 30, our company share portfolio had a cost of Rs. 103.8 million and a market value of Rs. 183.6 million.” He said that the company had concluded a rights issue of voting and non voting shares, each class being over-subscribed 2.5 and 2.6 times respectively.