Haycarb records Rs. 256 m PBT for Q1

Haycarb PLC, Hayleys Group's multinational business which operates the largest manufacturing base for coconut shell based activated carbon globally, achieved stable performance in the first quarter of financial year 2013/14.

In results released to the Colombo Stock Exchange, Haycarb reported a turnover of Rs. 2.5 billion and profit before tax of Rs. 256 million for the three months ending June 30, 2013. Profit after tax recorded for the quarter was Rs. 210 million, out of which profit attributable to equity holders of the company was Rs. 200 million.

Haycarb PLC, Managing Director, Rajitha Kariyawasan said that the results demonstrate the consolidation of the record performance of the previous year inspite of competition faced with softening of coconut carbon prices.

He said that the significant price reduction offered during the past year and the current quarter to pass the benefit of decreasing raw material prices to customers resulted in a decline of revenue in comparison with the first quarter of the previous year while retaining strong sales volumes.

The price of the main raw material, coconut charcoal, increased in Sri Lanka and in India in the three months under review due to the drop in coconut production while the supply and demand dynamics is expected to result in an increase in charcoal prices in Indonesia. The manufacturing operations also faced increases in energy, salaries, wages and other overhead costs. This will exert significant pressure on the gross margins in the coming months.

Kariyawasan said, "We are pleased to record the successful commissioning of additional value added activated carbon manufacturing capabilities in Badalgama from July this year. The construction of the second activated carbon manufacturing plant in Indonesia that commenced under PT Haycarb Palu Mitra is expected to be completed according to planned timelines in the first quarter of the next calendar year."