Sierra Cables Group records best-ever financial performance in FY21

Monday, 28 June 2021 00:05 - - {{hitsCtrl.values.hits}}

Sierra Cables CEO Harsha Jayatunga

Sierra Cables PLC, one of the largest cable manufacturers in Sri Lanka with an international presence, has in FY21 recorded a highest-ever revenue of Rs. 5.2 billion up 7% from the previous year.

The Group also yielded the highest ever profit after tax (PAT) of Rs. 314 million up 37.4% from FY20.

In a statement the Company said the financial performance underscores the group’s ability to maintain a healthy Gross Profit margin (GP) of 15.6% and Net Profit margin (NP) of 5.7%.

“This is a commendable performance considering the prevailing pandemic and turbulence environment that the company had to operation in,” the statement said.

Revision to the company’s national long-term rating to AA- (lka) proved as an encouraging aspect which won the stakeholder confidence and enhanced the credit worthiness of the company. The company’s net finance cost reduced by 31.2% over the year due to the prudent financial planning and mitigation strategies company adopted throughout the pandemic period.

Sierra Cables PLC CEO Harsha Jayatunga said: “Despite production cost escalation triggered by the gradual rise in the world copper, aluminium and other key raw material prices, company was able to reduce general overheads by adopting prudent cost rationalising strategies.”

“We saw an improvement in group’s major key performance indicators that are of importance to our stakeholders,” he added.

Financials of the company shows Earnings Per Share (EPS) increased from 0.49 to 0.59. Net Assets per share from 3.74 to 4.99. Net margin from 4.11% to 5.71%.

Encouraged by the remarkable financial performance Sierra Cables is aspiring to become a respected local manufacturer and worthwhile contributor to the national economy. It is determined to continue in their profitable path and explore further market niches such as solar cables and to introduce new product lines such as HDPE pipes to its portfolio through its subsidiary Sierra Industries Ltd.

Aimed at enhancing renewable energy supply to meet the nation’s energy needs, the company has setup a dedicated plant for solar manufacturing with inhouse tinning facility. The factory facility is currently in the process of modernising the expansion of their finished good warehouse with state-of-the-art facilities that have set up a laboratory to facilitate FR, LSHF cable testing.

Giving his insights of the future of the industry in Sri Lanka, CEO Jayatunga said: “We have a very positive outlook on the Colombo International Financial City (Port City) and other proposed expansion initiatives of the government that are destined to bring in many financial and development benefits to the country. The Government’s initiative on these projects is a real encouragement, where we see all manufacturers including the players in the cable industry growing in terms of sales and profits due to such projects. We are also very honoured to take part as the major cable supplier to the majority of these projects.”

The CEO also said with the import restriction of non-essential items, cables and other building materials that are locally manufactured have many prospects and the future outlook is very encouraging. “We believe we are geared to capture large-scale and public sector businesses due to the government stance in supporting local businesses which is very encouraging during these challenging market conditions,” he added.