Lanka Walltile Group prospers in first half
Capping the first six months of the 2010 financial year, Lanka
Walltile Group recently announced buoyant first half results that
clearly validated its commitment to prudent management practices and
clear strategic vision.
Making the most out of a positive Sri Lankan business environment,
the Groupís three main sectors ceramic tiles, plantation, and packaging
- recorded a 19.1 percent increase in turnover and a 42.5 percent surge
in gross profit compared with the same period in 2009.
The Groupís achievement is even more impressive considering that its
foreign markets are still recovering from the lingering effects of the
global financial crisis.
Although these difficult global conditions contributed to the closure
of the Groupís export-oriented Balangoda tile factory, Lanka Walltile
went beyond its statutory obligations to its employees, paying more than
Rs 211 million to affected workers as compensation, an amount that was
significantly more than that stipulated by the Government under the TEWA
Even with this substantial charge, the Groupís net profit after tax
was almost the same as that of the corresponding period in 2009.
Lanka Walltile Groupís profit before tax during the first half of the
2010 financial year rose 22 percent to Rs 315.98 million compared with
the same period in 2009, spurred largely by an increase in domestic
demand, especially in the construction sector.
To meet the increased demand for large tiles, Lanka Walltile is
investing Rs 700 million during the current financial year to expand
production capacity in the Meepe factory.
With civil construction nearing completion and premium Italian
machinery due to arrive in this month, production capacity at the newly
expanded Meepe factory will increase by 3,600 square metres per day.