Kelani Tyres Plc has posted a profit before tax of Rs.706 million with its new joint venture holding company CEAT KELANI Associated Holdings (Pvt) Ltd recording Rs. 353 million profit before tax for the financial year 2009/2010, Company Chairman Chanaka De Silva said in his review of the year ending 31st March 2010.
Tyre exports to Indian market under the Free Trade Agreement and to many other destinations such as Egypt, Nigeria, and Dubai had increased significantly, he added.
He noted that there was significant production increases in the factory, thereby bringing down the "conversion cost" which is the cost incurred in converting one kilo of raw materials into the finished product (a critical measure of efficiency internationally used in the tyre industry), even below the cost incurred by the joint venture partner in their factories in India.
Mr. De Silva pointed out that the company is evaluating carefully the challenges ahead to further modernize its plants for continuous expansion of both Radial and Bias (ply) tyre production. Based on the performance of the companies during the year under review and dividends received subsequently, the directors have now declared a dividend of Rs.2/50 (gross) per share amounting to a net distribution of Rs.90,450,000/- which would be distributed as an Interim Dividend. |
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