Haycarb records Rs 485 m PAT in 1H

Haycarb PLC, 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 a revenue of Rs 5.9 b for the six months ending September 30, 2012.

Profit before tax for the period improved to Rs 574.9 m, while net profit for the six months was Rs 485.4 m. Profit attributable to equity holders of the company increased to Rs 422.4 m.Haycarb PLC Managing Director, Rajitha Kariyawasan said maximum capacity utilisation 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 said 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 said.

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.