Expolanka triples profit in FY 2011

Newly listed conglomerate Expolanka Holdings has tripled its profits in the financial year ended 31 March, 2011 boosted by healthy growth in top line.

Group pre-tax profit in FY 2011 had crossed the Rs. 2 billion mark to Rs. 2.3 billion, up 150% from Rs. 926 million in the previous year whilst after-tax profit had grown from Rs. 591 million to Rs. 1.76 billion reflecting a 199% growth. Net profit attributable to equity holders was Rs. 1.54 billion, up by near 200% from Rs. 518 million in FY2010.

The impressive bottom line performance had been boosted by a healthy 37% or Rs. 8.8 billion growth in Group turnover to Rs. 32.5 billion in FY2011.

Both top line and bottom line results in FY2011 were either online or above forecasts made by brokers based on historical and FY2011 nine months performance at the time of Expolanka’s IPO.

The 2011 FY results were revealed in the release of interim accounts for the first quarter of 2012 FY yesterday.

A spokesman for Expolanka Holdings attributed 2011 FY results to efficiency in operations, improved operating leverage and low finance cost as being instrumental in increased profit.

Forging ahead with the momentum created in FY2011, the first quarter of the current financial saw Expolanka placing itself in a position of advantage posting a net profit attributable to equity holders of Rs. 273.5 million, up by 15% over the first quarter of last year.

“An after tax profit of Rs. 313.8 million for the 3 month period ending 30 June, 2011, reflect an increase of 28% in comparison to the corresponding period in the previous financial year, adjusting for the companies divested from the group between the periods of review,” the spokesman added.

He said the increase in the Gross Profit margin for the period stood at an impressive 20%; with a GP margin of 22.04% in the period under review over the 19.8% for the corresponding period of the previous financial year.

Group assets as at 30 June, 2011 amounted to Rs. 14.3 billion, as against Rs. 13.4 billion as at 31 March, 2011. Net asset per share was Rs. 4 up from Rs. 2.91 as at end FY2011.

The spokesman said the strategic restructuring of the company in line with its Initial Public Offering, the increase in geographic reach of the group, focused business development and increased operational efficiencies can be identified as key success points of the group’s performance during the 1st quarter of 2011/12, as compared to the previous comparative period.

Establishing Expo Freight, Vietnam and PT Expo Unipara, Indonesia in line with the company's acquisition strategies to consolidate its freight forwarding business, along with advancement in new business lines had paid rich dividends with the transport sector of the conglomerate showing great promise.