Haycarb turnover up at Rs. 2.9 bln, |pre-tax profit Rs. 220 mln in Q12016
View(s):Haycarb PLC this week reported revenue of Rs. 2.9 billion, and profit before tax of Rs. 220 million for the first quarter of 2015/16. The profit after tax was Rs. 191 million. Haycarb PLC Managing Director Rajitha Kariyawasan in a media release said that the downturn in the gold mining industry coupled with significant depreciation of currencies in key markets of Europe, Japan and Australia have posed a significant strain to prtect margins. The low cost competition from smaller manufacturers in Philippines, Indonesia and India and continued difficulties in charcoal procurement especially in Sri Lanka has resulted in a very challenging period in the near term.
“Against this backdrop, Haycarb Group will focus on lean initiatives to achieve cost savings and pursue its strategy of increasing its market share in the value added carbon segment. At the same time significant thrust is made to increase our direct marketing presence in the US, through our new structure at Haycarb USA,” Mr. Kariyawasan said, adding that growth in its environmental engineering arm Puritas (Pvt) Ltd is expected to contribute more to the profitability of the group.