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| Sunday, 28 August 2005 |
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Business |  |
| News Business Features Editorial
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Hayleys pre-tax profits down marginally, turnover grows 27% in 1Q, 2005 The Hayleys Group has reported a drop in profits for the first quarter of 2005-06, despite a respectable 27 per cent growth in turnover for the period. An inflation rate disproportionate to the strength of the Rupee, and shortages of charcoal and fibre which affected the bottom lines of the Group's Activated Carbon and Fibre segments, took the shine off an otherwise healthy overall performance. In results released to the Colombo Stock Exchange last week, Hayleys reported pre-tax profits of Rs. 320 million, down marginally from the Rs. 322.3 million of the first quarter of the previous year. Profit after tax and minority interest was down 10 per cent to Rs. 102.3 million. In contrast, Gross Turnover grew 27 per cent to Rs. 5.1 billion. Conceding that historically, the first quarter results have been lower than those of the quarters that follow, Hayleys Chairman Rajan Yatawara has acknowledged that these results may yet create anxiety in the context of expectations expressed in the last annual report of a 50 per cent improvement in Group results in 2005-06. "If my projections are to hold good, inflation must be curtailed in line with the strength of the Rupee. It has not been so in the year so far." "Productivity and capacity increases, innovative products and new markets have enabled the survival over the many years this imbalance has endured," Yatawara said. "These solutions are not elastic perpetually." |
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