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The net profit after tax at Rs. 369 million was an increase of 7% over the corresponding period last year. The net profit attributable to the equity holders of parent has increased by 17% to reach Rs. 323 million in comparison to Rs. 276 million recorded during the corresponding period last year.
Expolanka Holdings PLC Group CEO Hanif Yusoof said: “The results of the first quarter of the financial year are a reflection of sluggish regional market conditions which prevailed. We continue to focus on our strategy of growth and consolidation of businesses. We are also critically evaluating to exit from non-core businesses which continue to make losses and eroded shareholder value.”
The primary sector, Freight & Logistics, recorded 40% growth in revenue over previous year first quarter. The net profit for the period of this sector recorded 24% growth over similar period previous year. This increase was driven by trade volume growths in new venture in Hong Kong, China and USA despite lower than expected results from the Indian business.
The re-branding exercise that was executed during the last year to drive the sector through a new brand strategy and logo ‘efl’ began to offer positive results in securing new businesses. Continued focus will be given to the sector, with a view to exploit growth potential. The emphasis this year would be to improve margins whilst maintaining steady volume growths.
The Travel & Leisure sector recorded a 5% growth rate in revenue during the quarter under review. Consolidating of the existing businesses has resulted in the sustaining the revenue levels which grew from Rs. 715 million to Rs. 747 million. However the profit for the period of this sector declined to Rs. 21 million from Rs. 43 million mainly as a result of squeeze in margins due to adverse market conditions in Indian outbound travel segment. The cost escalations in the overheads too impacted the bottom-line.
The International Trading & Manufacturing Sector revenue grew by 31% over previous year to reach Rs. 3.85 billion from Rs. 2.94 billion. This was as a result of increased exports of teas, perishables and commodity products.
The sector faced with challenges in managing the margins which declined to 7% from 13% as a result of fluctuations in commodity prices. The sector profit for the period declined from Rs. 57 million to Rs. 21 million mainly due to the margin drop. The increase in finance cost due to the increased revenue base has also affected the bottom-line together with a drop of other income and exchange gains by Rs. 22 million over previous year.
The Investments & Services Sector sustained its revenue levels and recorded marginal 3% growth over last year. However the sector has turned the loss of Rs. 3 million incurred during the last year to Rs. 18 million profit for the period. Though the GSA segment had to encounter industry challenges, it has managed to increase its profit levels and also generated higher cash-flows. Tertiary education has shown steady performance during the quarter under review.
“At Group level we continue to take the right initiatives and implement strategies with more focus being given to consolidate our existing core businesses. This we believe would enhance our focus on the performing segments of the group. We have also taken steps to streamline processes and invest in developing the core sectors to reap more operational efficiencies and synergies in the medium term. Whilst global trade activity may have a negative impact on the performance of the Group in the short term, we believe that we are well positioned to capitalise on the emerging growth opportunities because of its strong fundamentals and we remain optimistic of the future,” Yusoof added.
