Haycarb posts Rs 178 m net profit in Q1

Consistent demand for its products, and continued value addition have generated encouraging results for Haycarb in the first quarter of 2010-11.

The company said the performance of its Sri Lankan operation was below expectations, primarily due increasing domestic costs and the appreciation of the rupee, but this was offset by very good performances from overseas marketing and manufacturing operations.

Haycarb reported profit before tax of Rs 209 million against a turnover of Rs 1.5 billion for the three months ending June 30, 2010 in comparison with profit before tax of Rs 118 million reported for the corresponding period of the previous year.

Profit attributable to equity holders of the company also grew to Rs 157 million from Rs 88 million achieved during the first three months of last year.

Haycarb Managing Director Rajitha Kariyawasan said the demand for activated carbon remains strong but cautioned that the very high charcoal price would continue to challenge the margins of its largest manufacturing base in Sri Lanka. Incorporated in 1973, Haycarb is the pioneer manufacturer of activated carbon in any coconut producing country.

Besides its overseas manufacturing facilities in Indonesia and Thailand the Group has marketing offices in the UK, Australia and USA. Its product range covers standard, washed, and impregnated carbons in granular, pellet and powder form.