Laugfs profit tops Rs 422 m

Laugfs Gas Ltd and its subsidiaries performed strongly during the six months period under review ending September 30, 2010.

The group turnover increased by 34 percent against the corresponding period, with profit after tax reaching Rs 422.9 million as against Rs 288.9 million last year, which is an increase of 46 percent.

In terms of volume the LP Gas cylinder sales have increased by 37 percent and in terms of metric tonnage there was an increase of sales by 22 percent over the forecasts made for the period under review.

The group has consolidated further its financial position as reflected in the unaudited Balance Sheet as at September 30, 2010 with its increase in Net Asset Value (NAV) to Rs 3.26 billion and this is an increase of 15 percent over the Audited Financial Statements as at March 31, 2010.

Also the Retained Earnings grew by an impressive 50 percent over the Audited Financial Statements as at march 31, 2010 while Trade and Other Receivables decreased by 17 percent as a result of prudent credit and cash flow management practices adopted.

The parent Laugfs Gas Ltd and also the Laugfs Eco Sri (Pvt) Ltd, fully owned subsidiary, contributed significantly to the growth of profits earned for the group.

As for Laugfs Gas, the aggressive promotional campaign commenced in September 2010 contributed largely for the growth in revenue and this has overtaken the forecasted revenue figures for the period concerned.