Haycarb improves 1H PAT to Rs 485 million

Haycarb PLC, the Hayleys Group's multinational activated carbon manufacturer, has reported robust top and bottom line growth for first half of the financial year. Releasing its interim financial statements to the Colombo Stock Exchange, the company reported revenue of Rs 5.9 billion for the six months ending September 30, 2012.

Profit before tax for the period improved to Rs 574.9 million, while net profit for the six months was Rs 485.4 million. Profit attributable to equity holders of the company increased to Rs 422.4 million. Haycarb PLC Managing Director Rajitha Kariyawasan said maximum capacity utilization and increases in the company's higher value added carbon segment, combined with the benefits of lean manufacturing initiatives and process improvements, had contributed to these results.

The relative price stability for coconut shell charcoal in manufacturing countries had also enabled the company to maintain its margins. Kariyawasan cautioned, however, that the benefit of reduced charcoal prices had been passed on to customers at regular intervals, and that raw material prices could move up as most of the key coconut manufacturing countries move in to the lean production season. Haycarb has continued its strategy of investing in charcoal inventory with significant working capital funding to ensure supply security, he added.

He also expressed concern on the continuing economic slowdown and stagnation in major export markets, along with the increased supply of activated carbon from a number of existing and new manufacturing facilities due to the low prices and higher availability of coconut charcoal.

Haycarb expanded its activated carbon manufacturing capacity by 10 per cent in the period under review with the acquisition by Carbokarn, its joint venture in Thailand, of a 100 percent stake in Shizuka Company Ltd., which owns an activated carbon manufacturing facility in Ratchaburi Province.