Profit before tax of the group was Rs. 464 million, up 23 per cent from the earlier year while post-tax profit totalled Rs. 379 million against Rs. 307 million earlier, according to a company statement.
Discussing trends in 2013, the company said the construction sector was major contributor to Sri Lanka’s GDP growth of 7.3 per cent.
The construction sector grew at 14.4 per cent, double the pace of aggregate GDP growth, driven by a continuing trend of investment in infrastructure, hotels and the residential sector.
Macroeconomic conditions were also conducive as interest rates declined reducing cost of capital, whilst inflation was anchored at mid-single digit levels.
Modest global economic growth ensured moderate commodity prices including that of aluminum, the key raw material for Alumex, the statement said.
Encouraged by the growth in the construction sector, Alumex has invested further in its distribution network and expanded into new areas across Sri Lanka. The group also made progress in its export ventures as revenue was increased in the Maldives and India, it said.
“Despite the strong growth in construction, the industry is not without challenges. The volatility in the liquidity position in the construction sector restricted sales in the latter half of the year but a change in strategy mitigated its effects by the year end.
There is also an ever present risk of low quality imports entering the market and it is important that the government is vigilant of this and takes steps to ensure that domestic industry does not suffer as a result,” the statement added.