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Sri Lanka’s corporate sector earnings for January to march quarter 2011 surged 62.2 percent from the same period last year reflecting positive economic growth while oil palm sector companies recorded the highest growth, said a research report.
Earnings of 225 firms out of the total 256 listed on the Colombo bourse have grown to 36.7 billion rupees during the first three months of this year from 22.6 billion rupees in the same period last year, says Lanka Securities in its quarterly earnings review.
According to the report, having eliminated the non-recurring profit, the quarter witnessed a 57.3 percent year-on-year surge in net profit from the 20.9 billion rupees in the comparative period.
Oil palm
Oil palm sector is leading with a YoY profit growth of 286.5 percent stealing the ‘star performer’ spot on the CSE from the Motor sector which recorded back to back highest growth in net profit for the last couple of quarters due to the welcoming tax revision on import duties.
“Growth in profitability can be directly attributable to the surge in palm oil prices, 48.6 percent YoY,” the report said.
Nearly 85 percent of the sector earnings is dominated by Bukit Darah (BUKI), a part of the Carson Cumberbatch group which made an imposing return by recording 78.1 percent QoQ earnings growth while other companies reported healthy earnings growth as well.
Food and Beverage
The sector recorded the second highest YoY net profit growth of 208.2 percent and a 58.3 percent QoQ growth the highest earnings ever in the post war period.
Business tycoon Harry Jayawardena controlled Distilleries (DIST) made the highest contribution of 27 percent profit growth to the sector earnings. The report noted that a 3.8 billion rupees worth disposal of investment boosted earnings at Distilleries.
Three Acre Farms Limited, a unit of Singapore based Prima Group saw net profit for the quarter jump 7,804.0 percent from a year earlier on the back of Productivity in breeder farms and hatcheries contributing to profit growth.
“BFT (Beverage, Food and Tobacco) sector will be the driving force in the corporate earnings for the upcoming periods given the persistent growth in consumption along with the increasing per capita income,” the report said.
Motor sector
YOY profitability of the motor sector was up 132.5 percent to 1119.8 million rupees which the report attributes to the overwhelming demand for vehicle hyped by the reduction in vehicle imports duties.
However QoQ sector profits declined by 13.4 percent, signaling fading effects of tax revision.
“Hence we are not anticipating abnormal profit growth in the forthcoming periods that was seen in the last quarter,” the report said.
Diesel and Motor Engineering (DIMO) the largest player in the sector accounted for 44 percent of sector growth. The firm posted a YOY earnings growth of 379.2 percent.
“With the prevailing economic conditions in the country and growing demand along with per capita income we anticipate sustainable growth in the companies in the sector,” the report said.
YoY quarterly profits of other sectors; Trading was down 118.1 percent while Power & Energy dipped 65.2 percent.
HealthCare sector net profits also dropped by 38.2 percent over the same quarter last year while and Information Technology slid 8.2 percent pressurizing corporate earnings.
http://www.lbr.lk/fullstory.php?nid=201106292206125681
Earnings of 225 firms out of the total 256 listed on the Colombo bourse have grown to 36.7 billion rupees during the first three months of this year from 22.6 billion rupees in the same period last year, says Lanka Securities in its quarterly earnings review.
According to the report, having eliminated the non-recurring profit, the quarter witnessed a 57.3 percent year-on-year surge in net profit from the 20.9 billion rupees in the comparative period.
Oil palm
Oil palm sector is leading with a YoY profit growth of 286.5 percent stealing the ‘star performer’ spot on the CSE from the Motor sector which recorded back to back highest growth in net profit for the last couple of quarters due to the welcoming tax revision on import duties.
“Growth in profitability can be directly attributable to the surge in palm oil prices, 48.6 percent YoY,” the report said.
Nearly 85 percent of the sector earnings is dominated by Bukit Darah (BUKI), a part of the Carson Cumberbatch group which made an imposing return by recording 78.1 percent QoQ earnings growth while other companies reported healthy earnings growth as well.
Food and Beverage
The sector recorded the second highest YoY net profit growth of 208.2 percent and a 58.3 percent QoQ growth the highest earnings ever in the post war period.
Business tycoon Harry Jayawardena controlled Distilleries (DIST) made the highest contribution of 27 percent profit growth to the sector earnings. The report noted that a 3.8 billion rupees worth disposal of investment boosted earnings at Distilleries.
Three Acre Farms Limited, a unit of Singapore based Prima Group saw net profit for the quarter jump 7,804.0 percent from a year earlier on the back of Productivity in breeder farms and hatcheries contributing to profit growth.
“BFT (Beverage, Food and Tobacco) sector will be the driving force in the corporate earnings for the upcoming periods given the persistent growth in consumption along with the increasing per capita income,” the report said.
Motor sector
YOY profitability of the motor sector was up 132.5 percent to 1119.8 million rupees which the report attributes to the overwhelming demand for vehicle hyped by the reduction in vehicle imports duties.
However QoQ sector profits declined by 13.4 percent, signaling fading effects of tax revision.
“Hence we are not anticipating abnormal profit growth in the forthcoming periods that was seen in the last quarter,” the report said.
Diesel and Motor Engineering (DIMO) the largest player in the sector accounted for 44 percent of sector growth. The firm posted a YOY earnings growth of 379.2 percent.
“With the prevailing economic conditions in the country and growing demand along with per capita income we anticipate sustainable growth in the companies in the sector,” the report said.
YoY quarterly profits of other sectors; Trading was down 118.1 percent while Power & Energy dipped 65.2 percent.
HealthCare sector net profits also dropped by 38.2 percent over the same quarter last year while and Information Technology slid 8.2 percent pressurizing corporate earnings.
http://www.lbr.lk/fullstory.php?nid=201106292206125681
