Interim Financial Report as at 31 03 2024

2024

2023

Year ended

For the three months ended 31st March

Variance %

31.12.2023

Rs,'000

Rs,'000

Rs,'000

Revenue

7,405,489

9,841,508

(24.75)

36,152,393

Cost of sales

(6,982,844)

(8,432,598)

17.19

(42,454,093)

Gross profit

422,645

1,408,910

(70.00)

(6,301,700)

Other income

573,409

(220,121)

360.50

489,409

Distribution expenses

(36,410)

(16,798)

(116.75)

(84,854)

Administrative expenses

(918,725)

(884,169)

(3.91)

(3,902,777)

Other operating income / (expenses)

99,955

(10)

-

(1,170,521)

Net finance income / (expenses)

(493,578)

(552,975)

10.74

(2,366,259)

Profit / (Loss) before tax

(352,704)

(265,163)

(33.01)

(13,336,702)

Income tax expense

(1,287)

(47,864)

97.31

2,408,694

Profit / (Loss) for the period

(353,991)

(313,027)

(13.09)

(10,928,008)

Other comprehensive income

Revaluation of free hold land

-

-

8,072,414

Revaluation of plant and machinary

786,803

-

-

-

Fair value Change of instruments valued at FVOCI

-

-

311

Foreign currency translation differences - foreign operations

(30,585)

(6,658)

(42,892)

Defined benefit plan actuarial gains / (losses)

-

-

159,415

Tax on Revaluation Reserves

(236,041)

-

(2,469,548)

Other comprehensive income for the period - net of taxes

520,177

(6,658)

5,719,700

Total comprehensive income for the period

166,186

(319,685)

(5,208,308)

Profits / (Losses) attributable to :

Owners of the company

(356,560)

(323,593)

(10,945,381)

Non - controlling interest

2,569

10,566

17,373

Profit / Loss for the period

(353,991)

(313,027)

(10,928,008)

Total comprehensive income attributable to :

Equity holders of the parent

176,513

(327,496)

(5,205,474)

Non - Controlling interest

(10,327)

7,811

(2,834)

Total comprehensive income for the period

166,186

(319,685)

(5,208,308)

Earnings per share (Rs)

(4.96)

(4.50)

(152.32)

Note : Figures in brackets indicate deductions

The above figures are subject to audit

As at 31st March

2024

2023

As at 31.12.2023

Rs,'000

Rs,'000

Rs,'000

ASSETS

Non-current assets

Property, plant and equipment

14,093,549

5,337,569

13,308,424

Intangible assets

12,843

26,951

17,226

Right - of Use asset

231,924

170,204

242,270

Investments Classified as Fair Value through OCI

22,568

22,257

22,568

Differed Tax assets

-

6,958

-

Other financial assets Including Derivatives

424,036

333,956

413,561

Total non-current assets

14,784,920

5,897,895

14,004,049

Current assets

Inventories

3,780,131

8,245,599

3,716,351

Trade and other receivables

14,568,487

18,969,710

16,195,218

Other financial assets including derivatives

228,327

178,067

193,167

Cash and cash equivalents

5,394,044

17,116,157

4,465,534

Total current assets

23,970,989

44,509,533

24,570,270

Total assets

38,755,909

50,407,428

38,574,319

EQUITY AND LIABILITIES

Stated capital

714,396

714,396

714,396

Exchange equalization Reserve

81,973

118,444

99,662

Fair Value through OCI Reserve

22,458

22,147

22,458

Revaluation Reserves

6,201,451

-

5,650,690

Retained Earnings

(4,133,551)

6,733,205

(3,776,992)

Equity attributable to equity holders of the parent

2,886,727

7,588,192

2,710,214

Non-controlling interest

194,301

215,273

204,628

Total equity

3,081,028

7,803,465

2,914,842

Non-current liabilities

Interest bearing borrowings

7,715,000

-

3,000,000

Deferred Taxation

252,918

-

16,877

Lease liability

158,288

142,451

192,749

Employee benefits

1,284,159

1,272,037

1,308,865

Total non-current liabilities

9,410,365

1,414,488

4,518,491

Current liabilities

Interest bearing borrowings

16,424,165

24,366,487

20,850,998

Trade and other payables

8,979,287

12,490,513

8,566,640

Other financial liabilities including derivatives

-

-

1,751

Lease liability

32,918

39,864

468

Amounts due to related parties

-

2,296,000

-

Dividends payable

10,487

10,515

10,487

Bank overdrafts

817,659

1,986,096

1,710,642

Total current liabilities

26,264,516

41,189,475

31,140,986

Total equity and liabilities

38,755,909

50,407,428

38,574,319

Net assets per share (RS)

40.17

105.60

37.72

Note :The above figures are subject to audit

(Sgd.)J Furukawa

(Sgd.) Thimira S Godakumbura

Director

Managing Director / CEO

May 20, 2024 Colombo

Retained

Fair Value

Exchange

Revaluation

Non

For the three months ended 31st March

Stated capital

Through OCI

equalization

Total

controlling

Total equity

earnings

Reserve

Reserves

reserve

interest

Rs,'000

Rs,'000

Rs,'000

Rs,'000

Rs,'000

Rs,'000

Rs,'000

Rs,'000

As at 1 January 2024

714,396

(3,776,992)

22,458

99,662

5,650,690

2,710,214

204,628

2,914,842

Net Profit / (Loss) for the period

-

(356,560)

-

-

-

(356,560)

2,569

(353,991)

Other comprehensive income

-

-

-

(17,689)

786,802

769,113

(12,896)

756,217

Differed Tax on Asset Re-Valuation

-

-

-

-

(236,041)

(236,041)

-

(236,041)

Dividends paid

-

-

-

-

-

-

-

-

As at 31 March 2024

714,396

(4,133,551)

22,458

81,973

6,201,451

2,886,727

194,301

3,081,028

As at 1 January 2023

714,396

7,056,798

22,147

122,347

-

7,915,688

207,462

8,123,150

Net Profit / (Loss) for the period

-

(323,593)

-

-

-

(323,593)

10,566

(313,027)

Other comprehensive income

-

-

-

-

-

-

-

-

Dividends paid

-

-

-

(3,903)

-

(3,903)

(2,755)

(6,658)

As at 31 March 2023

714,396

6,733,205

22,147

118,444

-

7,588,192

215,273

7,803,465

For the three months ended 31st March

2024

2023

Rs,'000

Rs,'000

Cash flow from operating activities

Net profit before tax

(352,704)

(265,163)

Adjustment for ;

Depreciation of property, plant & equipment

142,488

130,743

Amortization of intangible assets

4,895

4,255

Provision for retirement benefit obligations

30,333

48,700

Provision / (reversal) for obsolete stocks

(99,956)

-

(Profit) / loss on disposal of property, plant and equipment

(1,996)

-

Interest income

(77,244)

(64,399)

Interest expense

647,643

623,543

Operating profit before working capital changes

293,459

477,679

(Increase) / Decrease in inventories

36,176

(2,704,143)

(Increase) / Decrease in trade and other receivables

1,700,003

2,267,899

(Increase) / Decrease in other financial assets

(45,635)

3,633

Investments classified as Fair Value Through Profit or Loss

-

65,770

Increase / (Decrease) in trade and other payables

379,695

(731,596)

Cash generated from / (used in) operating activities

2,363,698

(620,758)

Interest paid

(647,643)

(623,543)

Gratuity paid

(55,039)

(11,314)

Income tax / ESC paid

(2,682)

-

Net cash generated from / (used in) operating activities

1,658,334

(1,255,615)

Cash Flow from investing activities

Purchase of property plant and equipment

(141,384)

(111,258)

Proceeds from disposal of property plant and equipment

2,057

-

Interest received

14,319

109,511

Net cash generated from / (used in) investing activities

(125,008)

(1,747)

Cash flow from financing activities

Loans obtained / (paid) during the period (Net)

288,167

327,899

Net cash generated from / (used in) financing activities

288,167

327,899

Net Increase / (Decrease) in cash and cash equivalents

1,821,493

(929,463)

Cash and cash equivalent at the beginning of the period

2,754,892

16,059,524

Cash and cash equivalent at the end of the period

4,576,385

15,130,061

Analysis of cash and cash equivalents

Cash in hand and bank / short term investments

5,394,044

17,116,157

Bank overdrafts

(817,659)

(1,986,096)

4,576,385

15,130,061

2024

2023

Year ended

31.12.2023

For the three months ended 31st March

Variance %

Rs,'000

Rs,'000

Rs,'000

Revenue

6,941,525

9,059,964

-23%

33,049,430

Cost of sales

(6,648,862)

(7,872,862)

16%

(40,015,423)

Gross Profit

292,663

1,187,102

-75%

(6,965,993)

Other income

568,192

(221,851)

356%

468,910

Distribution expenses

(32,758)

(13,752)

-138%

(80,047)

Administrative expenses

(794,819)

(758,747)

-5%

(3,381,661)

Other operating Income / (expenses)

99,955

(10)

(1,170,521)

Net finance income / (expenses)

(491,391)

(556,971)

12%

(2,366,172)

Profit / (Loss) before tax

(358,158)

(364,229)

2%

(13,495,484)

Income tax expense

-

(25,500)

100%

2,451,135

Profit / (Loss) for the period

(358,158)

(389,729)

8%

(11,044,349)

Other comprehensive income

Revaluation of free hold land

-

-

8,015,214

Revaluation of plant and machinary

786,803

-

-

Fair value change of instruments valued at FVOCI

-

-

311

Defined benefit plan actuarial gains / (losses)

-

-

155,238

Tax on Revaluation Reserves

(236,041)

-

(2,451,135)

Other comprehensive income for the period - net of taxes

550,762

-

5,719,628

Total comprehensive income for the period

192,604

(389,729)

(5,324,721)

Earnings per share (Rs)

2.68

(5.42)

(153.69)

As at 31st March

2024

2023

As at 31.12.2023

Rs,'000

Rs,'000

Rs,'000

ASSETS

Non-current assets

Property, plant and equipment

13,388,219

4,670,679

12,626,310

Investment property

2,865

2,865

2,865

Intangible assets

11,822

25,459

16,279

Right - of Use asset

229,232

162,331

242,270

Investments In subsidiaries

13,652

11,901

13,652

Investments Classified as Fair Value through OCI

22,568

22,257

22,568

Other financial assets including derivatives

424,036

324,574

413,561

Total non-current assets

14,092,394

5,220,066

13,337,505

Current assets

Inventories

3,335,475

7,803,042

3,243,803

Trade and other receivables

11,956,386

16,617,328

14,109,726

Other financial assets including derivatives

228,327

174,771

191,416

Amounts due from related parties

508,958

459,325

379,227

Cash and cash equivalents

5,108,152

16,620,710

4,304,315

Total current assets

21,137,298

41,675,176

22,228,487

Total assets

35,229,692

46,895,242

35,565,992

EQUITY AND LIABILITIES

Stated capital

714,396

714,396

714,396

Fair Value through OCI Reserve

22,458

22,147

22,458

Retained earnings

(6,149,476)

4,754,634

(5,791,319)

Revaluation Reserves

6,161,411

-

5,610,650

Total equity

748,789

5,491,177

556,185

Non-current liabilities

Interest bearing borrowings

7,715,000

-

3,000,000

Lease Liability

155,046

129,473

187,301

Deferred Taxation

236,041

-

-

Employee benefits

1,251,573

1,237,308

1,272,743

Total non-current liabilities

9,357,660

1,366,781

4,460,044

Current liabilities

Interest bearing borrowings

16,424,165

24,366,487

20,850,998

Trade and other payables

7,320,025

10,640,871

7,122,521

Other financial liabilities including derivatives

1,751

2,273

1,751

Lease liability

32,918

35,064

5,915

Amounts due to related parties

516,238

2,995,978

847,449

Dividends payable

10,487

10,515

10,487

Bank overdrafts

817,659

1,986,096

1,710,642

Total current liabilities

25,123,243

40,037,284

30,549,763

Total equity and liabilities

35,229,692

46,895,242

35,565,992

Net assets per share (RS)

10.42

76.42

7.74

Note :The above figures are subject to audit

(Sgd.)J Furukawa

(Sgd.) Thimira S Godakumbura

Director

Managing Director / CEO

May 20, 2024 Colombo

Fair Value

Revaluation

Stated capital

Retained earnings

Through OCI

Total

Reserve

For the three months ended 31st March

Reserves

Rs,'000

Rs,'000

Rs,'000

Rs,'000

Rs,'000

As at 1 January 2024

714,396

(5,791,319)

22,458

5,610,650

556,185

Net Profit / (Loss) for the period

-

(358,158)

-

-

(358,158)

Other comprehensive income

-

-

-

786,803

786,803

Differed Tax on Asset Re-Valuation

-

-

-

(236,041)

(236,041)

Dividends paid

-

-

-

-

-

As at 31 March 2024

714,396

(6,149,476)

22,458

6,161,411

748,789

As at 1 January 2023

714,396

5,144,363

22,147

-

5,880,906

Net Profit / (Loss) for the period

-

(389,729)

-

-

(389,729)

Other comprehensive income

-

-

-

-

-

Dividends paid

-

-

-

-

-

As at 31 March 2023

714,396

4,754,634

22,147

-

5,491,177

For the three months ended 31st March

2024

2023

Rs,'000

Rs,'000

Cash flow from operating activities

Net profit before tax

(358,158)

(364,229)

Adjustment for ;

Depreciation of property, plant & equipment

123,110

112,483

Amortization of intangible assets

4,457

4,129

Provision for retirement benefit obligations

30,000

45,000

Provision / (reversal) for obsolete stocks

(99,956)

-

Interest income

(75,906)

(62,040)

Interest expense

646,848

623,392

Operating profit before working capital changes

270,395

358,735

(Increase) / Decrease in inventories

8,284

(2,663,041)

(Increase) / Decrease in trade and other receivables

2,229,304

2,620,757

(Increase) / Decrease in amounts due from related parties

(129,731)

(27,966)

(Increase) / Decrease in other financial assets

(47,386)

1,168

Increase / (Decrease) in trade and other payables

192,252

(350,634)

Increase / (Decrease) in amounts due to related parties

(331,211)

(863,840)

Cash generated from / (used in) operating activities

2,191,907

(924,821)

Interest paid

(646,848)

(623,392)

Gratuity paid

(51,170)

(8,294)

Net cash generated from / (used in) operating activities

1,493,889

(1,556,507)

Cash Flow from investing activities

Purchase of property plant and equipment

(98,217)

(109,670)

Interest received

12,981

106,931

Net cash generated from / (used in) investing activities

(85,236)

(2,739)

Cash flow from financing activities

Loans obtained / (paid) during the period (Net)

288,167

327,899

Net cash generated from / (used in) financing activities

288,167

327,899

Net Increase / (Decrease) in cash and cash equivalents

1,696,820

(1,231,347)

Cash and cash equivalent at the beginning of the period

2,593,673

15,865,961

Cash and cash equivalent at the end of the period

4,290,493

14,634,614

Analysis of cash and cash equivalents

Cash in hand and bank / short term investments

5,108,152

16,620,710

Bank overdrafts

(817,659)

(1,986,096)

4,290,493

14,634,614