Royal Ceramics Lanka PLC (Rocell) has called on the government to assist the ceramics industry in a bid to arrest rising costs. “The effects of the global economic meltdown are likely to be felt throughout this year and next and as such it will be a difficult year not only for the ceramics industry, but the entire domestic economy. We call on the government to consider assistance to the domestic ceramics industry, thereby enabling it to face challenges arising from a rising cost of production combined with a slowing construction market,” A. M. Weerasinghe, Chairman Rocell has said in his annual statement.
He said that the global recession and its implications in the Sri Lankan economy made 2008 a very challenging one for not only Rocell, but for the entire ceramics industry.
The Rocell group achieved a growth of 7.8% in revenue last year to Rs 3.7 billion from the Rs 3.4 billion it saw in 2007.
Mr. Weerasinghe said that profit before tax saw a negative growth of 16.4% falling to Rs. 538 million in 2008 mainly due to a fall in value of short term investments. He has said that the group achieved a net profit of Rs. 517 million, 15.21% lower than that experienced the previous year.
Nimal Perera, Managing Director of the company has said that given the current economic scenario, one of main constraints the company experienced during last year was the high interest rate factor. “Our current outstanding bank loans of Rs. 2.6 billion, of which Rs. 0.8 billion was invested in the Bathware sector, causes such investments to be highly geared.
Given the long term loans, a significantly high interest factor is allocated for this project,” he said. |
E-mail