Laugfs posts solid growth

Rs 750 m net profit for first nine months:

Harshini PERERA

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.

Chairman Wegapitiya

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 considered.

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 current year.

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.