KELANI VALLEY PLANTATIONS PLC (KVAL.N0000)

cse.alpha · 1 KELANI VALLEY PLANTATIONS PLC (KVAL.N0000) Tue Aug 02, 2011 4:48 pm

cse.alpha

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Kelani Valley Plantations PLC is a diversified agribusiness company with interests in production, processing, marketing, plantation crops and hydropower generation. The principal activities of the Company are the production and processing of tea and rubber. The Company's segments are Tea, Rubber and Others. The Company's core business interests are in tea and rubber, with a portfolio of approximately 30 estates covering over 13,000 hectares of both tea and rubber plantations, which are cultivated on lands that are leased from the Government of Sri Lanka. It produces traditional Ceylon Tea at approximately 10 tea processing centers. In latex rubber business, it manufactures sole crepe, centrifuge latex and crepe rubber, which are used mainly as raw materials in the manufacture of rubber gloves, and in pharmaceutical and shoe industries. The Company produces sole crepe in Sri Lanka with manufacturing operations being carried out at rubber factories situated in Yatiyantota and Dehiowita.

KVAL and TPL June 2011 results in the red
KVAL has reported Rs (50) m loss for quarter, despite strong contribution from rubber
http://www.cse.lk/cmt/upload_report_file/712_1312280512485.pdf

TPL has reported Rs (70) m loss for quarter (hardly any rubber)
http://www.cse.lk/cmt/upload_report_file/726_1312189477961.pdf

Gross profit margins on rubber are still much better than those on tea, but wage hike and gratuity impact are depressing all plantation results.

Monster · 2 Re: KELANI VALLEY PLANTATIONS PLC (KVAL.N0000) Tue Aug 02, 2011 5:13 pm

Monster

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DIPD, the parent company of KVAL may not produce profit or may produce a marginal profit in this quarter. In the previous quarter, DIPD was able to make profit due to the major contribution from KVAL.

windi5 · 3 Re: KELANI VALLEY PLANTATIONS PLC (KVAL.N0000) Tue Aug 02, 2011 5:21 pm

windi5

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WATA is also in loss. Results will be same for others as well,HOPL,ELPL,KOTA,NAMU,BALA,MADU,.

innam · 4 Re: KELANI VALLEY PLANTATIONS PLC (KVAL.N0000) Tue Aug 02, 2011 5:31 pm

innam

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it was obvious that the gratuity provision was going to take a bite no matter how much rubber was involved.

http://forum.srilankaequity.com/t2811-does-the-wage-hike-only-hit-tea-segment-of-a-plantation#18820

will be interesting to see whether KGAL manages a profit thei quarter due to their heavy rubber exposure.

we should also note that certain "sneaky" management teams can delay taking the gratuity provison into the cash flow till the 4th quarter(eg- MAL http://www.cse.lk/cmt/upload_report_file/722_1311763736321.pdf)

but eventually the bite will come.

stockanalytic · 5 Re: KELANI VALLEY PLANTATIONS PLC (KVAL.N0000) Tue Aug 02, 2011 5:34 pm

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Monster wrote:DIPD, the parent company of KVAL may not produce profit or may produce a marginal profit in this quarter. In the previous quarter, DIPD was able to make profit due to the major contribution from KVAL.

http://www.cse.lk/cmt/upload_report_file/670_1312280381536.06.11.pdf

Monster · 6 Re: KELANI VALLEY PLANTATIONS PLC (KVAL.N0000) Tue Aug 02, 2011 5:35 pm