The Oil Palm sector of the Watawala Plantation (PLC), recorded the highest ever after a tax profit of Rs.373 million, compared to Rs 195 million in 2010/11.
This has been the largest contributor to the company.
Chairman, Watawala Plantations G.Sathasivam,revealed this at the AGM held on Saturday in Colombo.
He said a 28% increase in the crop output as a result of improved agricultural practices, had increased in the extent cultivated and a (national sales average) NSA were the factors contributing to the sharp increase in profits.
Sathasivam said the Company's out look on the potential of the oil palm crop was buoyant. The crop's productivity vis a vis other competing cooking oils such as coconut, soya bean and corn, has been significantly higher. Furthermore, harvesting has been considerably as a less labour intensive, compared to tea and rubber. These supply side factors has combined with an increasing demand for the product's value as a cooking oil and as a raw material input in soaps, detergents, cosmetics and pharmaceuticals, as well as a source for bio fuel, underscores the viability and immense potential for expansion of this crop steam.
However,the profits of the company after taxes had declined by 2.17% to Rs 520 million, compared with Rs 532 million in the previous year, due to a down turn in the tea sector.But profitability of rubber and oil palm sectors, have helped to morethan offset the loss in the tea sub sector.
Meanwhile, the rubber sector had recorded a profit of Rs 60 Mn compared to a significant profit of Rs139 Mn achieved during the previous year.
The decline in profits had been mainly due to a fall in the national sales average by around 10 percent over the previous year.