Royal Ceramics beats 2010/11 results in nine months of FY12

Royal Ceramics Plc (RCL) has succeeded to overtake 2010/11 full financial year top line and bottom line performance within the first nine months of the current FY12.

Net profit attributable to equity holders of RCL in the first nine months of 2011/12 financial year was Rs. 1.48 billion, up by 45% in the corresponding period of last year but more importantly exceeded the Rs. 1.44 billion recorded in full FY11.

The beating of FY2011 bottom line in the FY12’s first nine months by RCL was despite other operating income (mainly profit from sale of shares) dipping by 16% to Rs. 162 million as against Rs. 192.5 million in the first nine months of FY11. In full FY11, RCL’s bottom line grew by 49.3% to Rs. 1.44 billion, from Rs. 964 million in FY10.

RCL Managing Director NimalPerera told the Daily FT that all round performance aided by aggressive marketing and prudent financial management have boosted top line and bottom line results.

Group turnover during the nine months ended on 31 December 2011 was Rs. 5.8 billion, beating the FY11 full year figure of Rs. 5.7 billion.

In comparison to the first nine months of FY11, the top line in the current year reflected a 23% increase.  In the first nine months of FY12 RCL’s Group net revenue grew by 23% to Rs. 5.2 billion. RCL Group comprises Royal Porcelain Ltd., RocellBathware Ltd and Ever Paint and Chemical Industries.

Gross profit rose by 27% to Rs. 2.45 billion. Profit before tax saw a 37% increase to Rs. 1.49 billion.

Tiles business had produced a profit of Rs. 1.3 billion in the first nine months of FY12, up from Rs. 1 billion a year earlier whilst sanitary ware had produced Rs. 152 million profit as against Rs. 4.5 million last year.  Latter’s’ revenue had grown to Rs. 675.7 million from Rs. 431.6 million whilst tiles revenue had improved to Rs. 4.42 billion from Rs. 4.27 billion in the first nine months of FY11.

In the third quarter of FY12, Group revenue amounted to Rs. 2.38 billion from Rs. 1.87 billion a year earlier whilst pre-tax profit was Rs. 615.4 million, up from Rs. 454 million. Net profit attributable to equity holders was Rs. 595.7 million, up from Rs. 413 million in the third quarter of FY11.

Business leader DhammikaPerera-controlled Vallibel One Plc, owns 51% stake in RCL.