Haycarb posts Rs 8b turnover in 3Q
Haycarb PLC, the Sri Lankan multinational of the Hayleys Group,
reported a turnover of Rs. 8 billion and profit before tax of Rs. 601
million for the nine months ending December 31, 2014. The profit after
tax stood at Rs. 508 million.
Haycarb, Managing Director, Rajitha Kariyawasan said, "Continuation
of the high raw material prices in Sri Lanka and India and the inability
to pass on the resultant cost increases to its customers impacted the
profitability of the Sri Lanka operations significantly."
He said that the requirement to increase product prices is evaluated
and balanced against the need to retain key customer accounts and
strategies formulated to capture new markets to grow the top line. The
depreciation of the currencies in some of Haycarb's key markets, notably
the depreciation of the Euro, Australian Dollar and Japanese Yen
resulted in exertion of yet more pressure on product pricing.
The challenges on cost increases were offset to some degree from cost
reductions achieved through lean initiatives that helped reduce energy
costs in manufacturing operations and increase productivity.
The Company is also looking into optimal usage and rebalancing of its
manufacturing capacity along with restructuring measures in the supply
chain to reduce costs in the medium term.
Haycarb continues to invest in development and commercialization of
specialized value added products, market expansion and brand presence.
The environmental engineering solutions arm, Puritas (Pvt) Ltd., made
significant progress during the 9 months under review as it increased
its local and regional presence for small to medium sized purification
projects. This sector will remain a key focus for diversification and
future growth of the Group.
Kariyawasan said, "The industry outlook remains strong given the
increasing demand for purification solutions globally. Haycarb is a
strong and a leading player renowned for its product and technical
excellence backed by a formidable supply chain and marketing network. We
remain confident of the medium and long term outlook."