Royal Ceramics’ 2Q shines with half a billion pre-tax profit

Royal Ceramics Plc (RCL) has produced an outstanding performance in the second quarter, achieving a half a billion pre-tax profit whilst Group revenue had topped Rs. 1.9 billion.

The impressive achievement in the second quarter ended on 30 September 2011 has boosted first half Group pre-tax profit by 41% to Rs. 894 million. Net profit attributable to equity holders of the parent had increased by 46% to Rs. 887.5 million in the first half of FY2012 and Rs. 495.8 million in the second quarter.

The bottom line had been helped by Rs. 1.9 billion Group revenue in the second quarter and Rs. 3.4 billion in the first half, up by 21% over the corresponding period of last financial year. RCL Group comprises Royal Porcelain Ltd., Rocell Bathware Ltd. and Ever Paint and Chemical Industries Ltd.

In the first half tiles sales had increased to Rs. 2.6 billion from Rs. 2.3 billion a year earlier whilst revenue from sanitary ware was Rs. 370.7 million up from Rs. 238 million. Profit from tiles business had increased from Rs. 613.4 million to Rs. 800 million whilst sanitary ware generated Rs. 64 million as opposed to a loss of Rs. 7 million in the first half of last year.

Gross profit at Group level was Rs. 1.43 billion, a growth of 24% over the first half of FY2011. In the second quarter the figure was Rs. 837.3 million, up from Rs. 640.4 million in the three months ended on 30 September 2010.

RCL’s first half resulted had benefitted from Rs. 164.5 million in other operating income mainly capital gains from sale of shares though lower by 21% in comparison to Rs. 207 million achieved in the corresponding period of last financial year.

Group assets were almost Rs. 10 billion as at September 30, 2011, up from Rs. 8.4 billion at the end of FY2011. Assets at Company level was Rs. 6.7 billion, up from Rs. 5.8 billion. On the liabilities side, Group’s non-current figure had increased to Rs. 1.76 billion, from Rs. 1.15 billion as at 31 March 2011 whilst current liabilities had increased to Rs. 2.46 billion, from Rs. 2.25 billion. The bulk of the liabilities are borrowings.

In June RCL acquired 20% stake in Lewis Brown and Company which owns Delmege Forsyth Group for Rs. 623 million. Controlling shareholder of RCL is business leader Dhammika Perera majority-owned Valliel One Plc.

Despite a negative market, RCL share price yesterday closed up by Rs. 1.70 to Rs. 137.80 whilst it hit an intra-day high of Rs. 139.