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| Sunday, 5 February 2006 |
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Hemas posts Rs 599 million net profit in nine months Hemas Holdings has performed well during the first nine months of the current financial year, recording a Group Turnover of Rs 7,085 million and a Net Profit of Rs 599 million. The growth in turnover compared over the corresponding period of the previous financial year was 13.4% and the growth in profits was Rs 21.3%. This year's profit growth was mainly on account of the contribution from the Power sector and good performances by the Transportation and FMCG Sectors. Profit growth for the quarter ended December 31, 2005 was 11.3% and was adversely impacted by the decline in the Leisure Sector performance during this quarter. The FMCG Sector continued to perform well posting a revenue growth of 9.8% and profit growth of 18.1% over the nine months. Market demand continued to be strong and the Sector did well to maintain or improve market share across most major categories. For the period under review, the Healthcare Sector recorded a turnover growth of 11.5% and a profit growth of 9.1%. For the quarter ended December 31, 2005, the Sector recorded a profit decline of 15.6%, owing to the downsizing of its own brand business. The Sector continued to perform well in its core business of Pharmaceutical distribution and continues to grow faster than the market. The Transportation Sector continues its impressive performance this year, with a 26.9% turnover growth and a 52.5% profit growth for the nine- month period. An overall growth in passenger travel and cargo movements has helped all areas of the Sector to perform well and post healthy growth rates. The recovery of the tourism industry from the tsunami has been slower than expected, and the resumption of hostilities in the North East made matters worse. Tourist arrivals were down and resort occupancies even more so. In this environment, the Leisure Sector's performance was below expectations, recording a loss of Rs 33 million for the period under review. This includes a capital gain of Rs 30 million on account of the divesture of Hemas 47% stake in Associated Hotels. The Sector is cautiously optimistic about the prospects for the rest of this winter season and the forthcoming summer season, but much will depend on the level of hostilities in the North East and the progress of the upcoming talks in Geneva. Operations of the Power Plant continue according to plan with the plant
completing its first full year of operation on December 8, 2005. During the
first year, Heladhanavi successfully delivered the required minimum
guaranteed energy to CEB. |
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