Richard Peiris Group (RPG) posted a net profit of Rs. 96 million for the second quarter ending 30th September against a Rs. 23 million net loss in the same period last year, but industry analysts say the next quarter results is unlikely to be as good as this given the fact the company made most of its money through plantations. "RPG (which has Namunukula Plantations, Kegalle Plantations and Maskeliya Plantations) made most of its profits from the plantations sector. The tea, rubber and palm oil at their three plantations benefited towards the tail end of the commodities boom during August to September,” an industry analyst explained.
ext quarter results will not be good, because the plantation sector has ‘fallen off a cliff’ as the commodity prices are low," he added.He explained further, "for instance, the Thick Pale Crepe (TPC 1-a type of rubber) rubber price averaged just under Rs. 400 a kilogram (in June) but early this week it traded at Rs. 125 a kilo."
RPG's long term interest bearing loans amounted to Rs. 2.7 billion while there is Rs. 1.1 billion current part of a long term loan, which is payable next year. It has Rs. 3.8 billion in short term loans. "These exclude the three plantation lease liabilities which are Rs. 730 million," the analyst said adding the company also has Rs.560 million worth of cash.
The company also saw its first half net profit up by 1,002 % year on year to Rs. 405 million. |
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