Laugfs posts solid growth
Rs 750 m net profit for first nine months:
Laugfs Group has posted a revenue of Rs 5.32 billion which is 32
percent increase over the corresponding year for the nine months ended
in December 31.
The Profit After Tax (PAT) of the group was Rs 750.3 million which is
an impressive 96 percent increase over the same period last year. The
group PAT has recorded a 27 percent increase, over the forecast made for
the period under review, Laugfs Holdings Limited Chairman W K H
Wegapitiya said Daily News Business.
He said as per the prospectus prepared in connection with the IPO,
part of its proceeds were applied in December 2010 in settlement of bank
facilities previously obtained by the company and this has made the
company virtually debt free.
The financial position of the group as reflected in the Balance Sheet
as at December 31, 2010 appears to be very strong with a total asset
base of Rs 8.6 billion as against Rs 4.5 billion recorded at the same
date last year.
“The Net Asset Value too increased to Rs 6.1 billion as at December
31, 2010 and this was at the level of Rs 1.5 billion at the
corresponding date last year.
The group’s current assets stand 1.8 times over its current
liabilities. This is a reflection of a very healthy liquidity position.
The diluted Earnings Per Share as at end of December 31, 2010 stands at
2.82 and it is a remarkable growth from 1.45 recorded for the same
period last year. The Basic Earnings Per Share is 2.97 for the current
period and the annualized figure for the same period last year was
1.53,” he said.
Laugfs Gas Limited contributed to the group revenue with Rs 4.87
billion for the period whilst earning a PAT of Rs 638.27 million which
is 61 percent increase over the same period last year.
The growth in revenue is around 26 percent and also the increase
gross margins contributed largely to this significant increase in PAT
during the period under review. It is also pertinent to note that the
finance cost has reduced by 25 percent during the nine months period
The Gross Profit of Laugfs Gas Ltd increased 18 percent over the
forecast whilst PAT increased over 28 percent against the forecasts made
by the company. The cylinders sold in all pack sizes ranging from 2 kg
to 37.5 kg increased substantially over both corresponding period last
year and against the forecast.
Wegapitiya said the revenue of Laugfs Eco Sri (Pvt) Ltd increased
during the period to Rs 405.3 million from the previous year which is an
improvement of 118 percent.
The PAT for the period was Rs 118.65 million and it was a loss of Rs
12.77 million for the corresponding period last year. The cash generated
from operations were Rs 358.5 million whilst it was only Rs 54.8 million
during the corresponding period last year and this has contributed
largely to reduce finance cost by 34 percent in the nine months of the
The company tested a record number of 859,409 vehicles for emissions
during the current period as against 441,962 during the corresponding
period last year.
The company is scheduled to commence construction of 100 roomed hotel
in Chilaw shortly with the utilization of the proceeds of the IPO since
all the preliminaries required had already been completed. Under the
development of land base LP Gas storage capacity at Mabima complex is
progressing and another 250 metric tons capacity storage tank had been
completed in Mabima complex. The construction of another storage tank of
a similar capacity will commence at the same premises.