Graphitwerk Kropfmuhl AG-controlled Sri Lankan mining and exporting firm Bogala Graphite has posted a 59% year-on-year increase in revenue to Rs. 386.49 million, from Rs. 242.76 million, for the 12 months to end-December 2010. Additionally, its net profit for the same period rose by 155% year-on-year to Rs. 70.32 million, from a net loss of Rs. 127.73 million.
Profitability also benefitted from 880% foreign currency gains to the tune of Rs. 31.46 million in 2010, up drastically from Rs. 3.21 million in 2009 and a result of a revaluation of a 1.84 million Euro loan. In addition, this scenario was made even better by a limited, 14% year-on-year increase in cost of sales to Rs. 254.90 million, from Rs. 223.73 million, which, in turn, allowed year-on-year gross profit growth to the tune of 592% to Rs. 131.58 million, from Rs. 19.02 million.
Also contributing to the 2010 results were a 62% year-on-year bump in fourth quarter revenue to Rs. 99.81 million, from Rs. 61.92 million, and a 4,305% year-on-year jump in net profit to Rs. 21.45 million, from a net loss of Rs. 0.51 million.
Meanwhile, according to Chairman, Vijaya Malasekera, quoted in the Bogala Graphite's 2010 annual report, profits were the "highest recorded" since the company was privatised while sales increased by 59% in 2010. Also, this year saw the completion of a Voluntary Retirement Scheme, which allows for a reduced cost base.
He also noted that this was in addition to measures which led to restricted administration costs and cost of sales, as well as finance costs which dropped from Rs. 50 million to Rs. 16 million over the course of 2010, mainly as a result of a loan from the parent company.
Mr. Malasekera also added the; "parent company has agreed to locate a Lubricant Processing Pant at Bogala. This will help us to produce graphite lubricants in Sri Lanka for the South-East Asian market.
There appears to be a reasonable potential to capture this market with quality graphite lubricants. We are confident this will boost our export sales while boosting our profitability... With the location of the Lubricant Processing plant together with the current price trends your Board is quietly optimistic about the future." |
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