Corporate news

SLT net profit grows 25% to Rs. 3,163m in 1H, 2008

Sri Lanka Telecom (SLT), the nation’s number one integrated communications service provider recently unveiled its first half 2008 financial results which confirmed a phenomenal growth of revenue and profits.

Year on year, the group has achieved a growth of 25% in its net profit after tax of Rs. 3,163m in the first half of 2008.

SLT chairperson Mrs. Leisha De Silva Chandrasena said, “Because of our strong presence in diversified business sectors the SLT group has been able to achieve an overall growth despite the reduction of tariff of fixed line services last year. Specially, our mobile arm Mobitel, plays a vital role strengthening the group position today.

This is why we are investing more in new business segments to build more players within the group for tomorrow. Therefore, our future is very stable”.

In achieving these results the revenue of the group increased by 13% to Rs. 23,358 m.More new connections were to counteract the revenue losses incurred as a result of the 9.02% tariff reduction introduced in November 2007.

However, the new connections which did not achieve the expected targets have impacted on PSTN and CDMA revenue to drop by 3% and 7% respectively. However, the phenomenal growth of 69% Mobitel revenue and 55% growth of data oriented services of SLT have contributed to grow revenue by 13% to Rs. 23,358 million after recovering the impact of tariff reduction.

This proves the group’s sustainability in the face of competition and changes in market conditions.

The overall personnel cost of the group has increased due to salary increments during the year as well as new recruitments.

The company has experienced a slight increase in bad debts due to the CDMA new connections given on instalment basis.

Hayleys post tax profit soars 278% to Rs 257m in 1Q

Strong performances from Plantations, Transportation and Agri Inputs augmented by gains from investments have enabled Hayleys PLC to improve Group performance significantly in the first quarter of 2008-09, despite the continuing impact of inflation on a major part of its business.

According to results released to the Colombo Stock Exchange this week, the Superbrand conglomerate’s profit for the period grew 278 per cent to Rs 257 million in the three months ending June 30, 2008.

Profit attributable to equity holders of the company increased to Rs 108 million from a loss of Rs 60 million in the corresponding quarter of the previous year.

Group turnover in the three months reviewed topped Rs 7.8 billion, a growth of 20 per cent, while profit before tax and discontinued operations improved by 89 per cent to Rs 293 million.

Hayleys Group Chairman N. G. Wickremeratne said, “The Plantations sector was the highest contributor to profits, helped by a continued strong market for tea and rubber. This was followed by the Transportation sector, which also exceeded expectations.

The Group’s business in Agri Inputs recorded a creditable result as well.” Wickremeratne said the Global Markets and Manufacturing sector in general had performed below expectations due to a time lag in passing through steeply rising input costs and to disruptions in operations due to weather and other factors.

In this sector the performances of Purification Products and Textiles were satisfactory, but the Hand Protection sector continued to be set back by losses from DPL (Thailand), albeit at a reduced level, he said. Fibre also performed below desired levels.

The overall Group result was augmented by the gain from divestment of the Group’s holding in Diesel and Motor Engineering (DIMO) during the review period, Wickremeratne said. The Group’s exit from Kinetics and closure of Consumer Durables are nearing completion, he said.

Standard Chartered pre-tax profits up 31% to $2.59 b in 1H

Standard Chartered PLC recorded an operating profit before tax (OPBT) rising 31 per cent to US$2.59 billion and operating income increasing 33 per cent to US$6.99 billion for the first half year ended, June 30, 2008.

Normalised earnings per share increased 19.6 per cent to 120.4 cents. The Board declared an interim dividend of 25.67 cents per share, up 11 per cent. Growth in underlying income accelerated to 28 per cent, up from 23 per cent in 2007.

The performance was a result of the disciplined investments made in its core markets over the past few years with 85 per cent of the operating income growth now coming from organic businesses. Both Wholesale and Consumer Banking businesses showed strong income momentum delivering over $3 billion of revenue each.

Group Chief Executive, Peter Sands said, “I am very proud of what we have achieved in terms of both financial performance and strategic progress, despite the turmoil in financial markets.

The Bank is in great shape - we are strongly positioned to weather the economic uncertainties and superbly placed to capture opportunities.” Most of the key markets in the Standard Chartered network delivered strong performance.

Hong Kong, the Group’s largest market, increased pre-tax profits by 28 per cent; India, the second largest market, by 89 per cent; Singapore by 55 per cent; Africa by 41 percent and UAE 65 per cent.

KVPL posts strong turnover and profit in 1 Q, 2008

Higher tea production coupled with better prices for tea and rubber have generated strong revenue and profit growth in the six months ending June 30, 2008, for Kelani Valley Plantations PLC (KVPL).

In results released to the Colombo Stock Exchange, the company which is owned and managed by Dipped Products, the Hayleys Group’s multinational hand protection business, has reported that turnover grew 34 per cent to Rs 1.7 billion.

Profit after tax was up 71 per cent over the first half of the previous year to Rs 226 million.

The major contributor to revenue growth was tea, with a 22 per cent improvement in production and a 17 per cent increase in average prices, the company said.

The increase in production was particularly visible because production in the corresponding half of 2007 was affected by the work disruptions of November and December 2006 due to trade union action.

Stockbroker FGE opens public gallery

Stockbroker First Guardian Equities (FGE) opened a dedicated public gallery in its head office on the 32nd Floor of the East Tower of the World Trade Centre, to facilitate investors to monitor and trade on the Colombo stock market.

Equipped with trading terminals and large screen display projection, First Guardian is working towards drawing in clients who are actively trading in the market on a regular basis.

First Guardian public gallery clients will have access to up-to-date research, the latest corporate and economic news and speedier access to the market.

First Guardian Equities sees this as an opportunity to help investors make informed decisions in an uncertain environment.

Managing Director/Chief Executive Officer Rohan C. J. Goonewardene said, “This was in response to a need for a place for customers to interact with brokers and analysts to make the best investment decisions in a relaxed and professional atmosphere”.