DCSL pays more dividends
View(s):The Distilleries Company of Sri Lanka PLC (DCSL) board of directors has revised the dividend policy of the company to that of paying out a minimum of 70 per cent of the Net Profit After Tax (NPAT) of the company as dividend.
“This revision was made due to the fact that non-liquor investments of the group will now take place at the holding company level, and the need of funds of liquor sector related expenditure will be minimal,” its Chairman D. H. S. Jayawardena has said in the interim financial statements of the company for the quarter ended 31st March 2018.
The NPAT for the last quarter of 2017/2018 was Rs. 1,902 million compared to the Rs. 811.9 million reported in the corresponding quarter in the previous year, showing a year on year increase of 134 per cent. “The increase in profit for the quarter is a reflection of adjustments that have been made in November 2017 to recover all increases in taxes imposed in November 2016. Until then the company has been partially absorbing to somewhat deflect the sharp increase in price that would have otherwise been passed on to the consumer,” Mr. Jayawardena has said.
The NPAT after tax for the year 2017/18 stood at Rs. 4,484 million compared to Rs. 4,975 million in the previous year. “This decline of 9.9 per cent was as a result of lower profitability during the period March 2017 to November 2017, due to the reasons explained above. Based on the performance in the quarter ended 31st March 2018, I am hopeful that your company will record impressive results in the ensuing financial year,” Mr. Jayawardena has said.