For the Period Ended 30th June 2025
Illuminating
LAXAP ANA PL C | Company No. PQ 170
LAXAPANA PLC
Interim Results For the Period Ended 30th June 2025
Overview
FY 2025/26 commenced with strong operational and financial momentum for Laxapana PLC. The Group demonstrated resilience amid macroeconomic uncertainty and dynamic market conditions, achieving steady top-line growth while continuing its strategic transformation. The ongoing
focus on long-term value creation, innovation, and operational efficiency is beginning to yield tangible results. These efforts position the Group favorably for sustainable growth in the coming quarters.
Financial Performance - Q1 Ended 30 June 2025
For the first quarter of the financial year 2025/26, the Group reported consolidated revenue of
Rs. 896 million, reflecting a strong 35% increase compared to the same period in the previous year (Q1 2024/25). The Company recorded revenue of Rs. 342 million, representing a 44% year-on-year growth, driven by strong sales performance and improved operational efficiencies.
The Group reported a Profit Before Tax (PBT) of Rs. 94 million and a Profit After Tax (PAT) of Rs. 63 million, both reflecting a 232% year-on-year growth. The Company achieved
a PBT of Rs. 66 million, marking a 330% increase, and a PAT of Rs. 48 million, representing a 373% growth compared to the corresponding
quarter of the previous year. These results underscore solid underlying profitability and the effective execution of the Group's core business strategies.
The Group's financial position remains strong and resilient, supported by robust operating cash flows.
Lanka Rating Agency reaffirmed the Company's long-term rating at 'BB+ Positive (lka)' with an upgrade during Q1. This reflects the Group's solid financial position, healthy cash flows, and prudent financial management. Laxapana's share price was appreciated by 90% during the quarter compared to Q1 2024/25, outperforming the ASPI.
During the first quarter, Sterling Steels (Private) Limited, the subsidiary of Laxapana PLC, delivered a satisfactory financial performance. The subsidiary reported significant growth in net revenue, gross profit, PBT, and PAT compared to the same period in the previous year. This performance was driven primarily by the expansion of its distribution network to strengthen its presence in the dealer market,
as well as a targeted marketing campaign aimed at promoting its product portfolio and reinforcing its market position through increased brand awareness.
Outlook
The Group remains confident in its growth trajectory, underpinned by the successful introduction of advanced products to the market.
These strategic efforts have laid a strong foundation for sustained
operational momentum. Continued top-line growth and healthy
gross profit margins highlight the resilience and efficiency of the Group's business model.
Laxapana PLC enters the forthcoming quarters with a strong sense of optimism, supported by consistent performance, strategic initiatives, and an expanding market presence. The continued growth
of its subsidiary, Sterling Steels (Private) Limited, along with the ongoing development of innovative product lines under the 'Laxapana' brand, provides a solid platform for accelerated growth.
To support this ambition, the Group will maintain its strategic focus
on enhancing responsiveness, sharpening its competitive edge, and aligning operations more closely with its long-term objectives.
S. Rajaratnam
Director
13th August 2025
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Statement of Profit or Loss and Other Comprehensive Income - GroupLAXAPANA PLC
Interim Results For the Period Ended 30th June 2025
For the Period Ended 30th June | 2025 Rs.'000 | 2024 Rs.'000 | Variance % |
Revenue | 895,721 | 665,911 | 35% |
Cost of Sales | (631,615) | (488,745) | 29% |
Gross Profit | 264,106 | 177,166 | 49% |
Other Income | 13,063 | 24,879 | (47%) |
Administrative Expenses | (70,681) | (77,368) | (9%) |
Selling Expenses | (91,600) | (74,936) | 22% |
Profit from Operating Activities | 114,888 | 49,741 | 131% |
Net Finance Expenses | (20,671) | (21,344) | (3%) |
Profit Before Tax | 94,217 | 28,397 | 232% |
Income Tax Expense | (31,003) | (9,368) | 231% |
Net Profit for the Period | 63,214 | 19,029 | 232% |
Earnings Per Share ( Rs.) | 0.95 | 0.29 |
Figures in brackets indicate deductions,
The above figures are provisional and subject to audit,
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Statement of Profit or Loss and Other Comprehensive Income - CompanyLAXAPANA PLC
Interim Results For the Period Ended 30th June 2025
For the Period Ended 30th June | 2025 Rs.'000 | 2024 Rs.'000 | Variance % |
Revenue | 342,314 | 238,523 | 44% |
Cost of Sales | (209,005) | (163,487) | 28% |
Gross Profit | 133,309 | 75,036 | 78% |
Other Income | 14,600 | 22,604 | (35%) |
Administrative Expenses | (27,261) | (23,513) | 16% |
Selling Expenses | (48,702) | (45,869) | 6% |
Profit from Operating Activities | 71,946 | 28,258 | 155% |
Net Finance Expenses | (6,243) | (12,979) | (52%) |
Profit Before Tax | 65,703 | 15,279 | 330% |
Income Tax Expense | (18,000) | (5,187) | 247% |
Net Profit for the Period | 47,703 | 10,092 | 373% |
Earnings Per Share ( Rs.) | 0.72 | 0.15 |
Figures in brackets indicate deductions,
The above figures are provisional and subject to audit,
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Statement of Financial PositionLAXAPANA PLC
Interim Results For the Period Ended 30th June 2025
Group | Company | |||
As At | Unaudited 30-06-2025 Rs.'000 | Audited 31-03-2025 Rs.'000 | Unaudited 30-06-2025 Rs.'000 | Audited 31-03-2025 Rs.'000 |
ASSETS | ||||
Non-Current Assets | ||||
Property, Plant and Equipment | 311,281 | 324,962 | 209,280 | 219,839 |
Work-In- Progress | 86,048 | 86,048 | 86,048 | 86,048 |
Right of use Asset | 14,821 | 16,940 | - | - |
Investment Property | 609,260 | 609,260 | 609,260 | 609,260 |
Trade and Other Receivables | 8,556 | 8,556 | - | - |
Investment in Subsidiary | - | - | 320,000 | 320,000 |
Deferred Tax Asset | 8,644 | 10,033 | - | - |
Total Non-Current Assets | 1,038,610 | 1,055,799 | 1,224,588 | 1,235,147 |
Current Assets | 1,037,729 | 1,163,262 | 296,446 | 266,252 |
Inventories | ||||
Amount due from Related Companies | 180,398 | 107,611 | 183,322 | 102,706 |
Trade and Other Receivables | 595,212 | 600,320 | 128,785 | 134,921 |
Financial assets at amortised cost | 97,722 | 47,905 | 97,722 | 47,905 |
Current Tax Assest | - | 3,665 | - | - |
Cash and Cash Equivalents | 59,246 | 61,250 | 24,044 | 44,995 |
Total Current Assets | 1,970,307 | 1,984,013 | 730,319 | 596,779 |
Total Assets | 3,008,917 | 3,039,812 | 1,954,907 | 1,831,926 |
EQUITY AND LIABILITIES | 546,384 | 546,384 | 546,384 | 546,384 |
Equity | ||||
Stated Capital | ||||
Revaluation Reserve | 1,107 | 1,107 | 1,107 | 1,107 |
Retained Earnings | 684,443 | 621,229 | 598,818 | 551,115 |
Total Equity | 1,231,934 | 1,168,720 | 1,146,309 | 1,098,606 |
Non-Current Liabilities | 58,270 | 57,280 | 17,798 | 17,394 |
Retirement Benefit Obligations | ||||
Interest Bearing Loans and Borrowings | 156,807 | 172,473 | 156,807 | 172,473 |
Deffred Tax Liability | 115,876 | 118,877 | 115,876 | 118,877 |
Lease Liability | 10,427 | 14,516 | - | - |
Total Non-Current Liabilities | 341,380 | 363,146 | 290,481 | 308,744 |
Current Liabilities | 691,074 | 831,913 | 364,542 | 305,215 |
Trade and Other Payables | ||||
Lease Liability | 11,904 | 10,670 | - | - |
Amount due to Related Companies | 1,347 | 2,488 | 821 | 276 |
Interest Bearing Loans and Borrowings | 633,711 | 641,878 | 115,689 | 98,088 |
Income Tax Payable | 40,472 | 20,997 | 32,525 | 20,997 |
Bank Overdrafts | 57,095 | - | 4,540 | - |
Total Current Liabilities | 1,435,603 | 1,507,946 | 518,117 | 424,576 |
Total Liabilities | 1,776,983 | 1,871,092 | 808,598 | 733,321 |
Total Equity and Liabilities | 3,008,917 | 3,039,812 | 1,954,907 | 1,831,926 |
Net Assets Value Per Share (Rs.) | 18.60 | 17.65 | 17.31 | 16.59 |
The above figures are provisional and subject to audit
I certify that these Financial Statements are prepared in compliance with the requirements of the Companies Act No. 07 of 2007.
A.D.T. Mendis
Director / Group Chief Financial Officer
The Board of Directors is responsible for the preparation and fair presentation of these Financial Statements. Approved and signed for and on behalf of the Board of Directors of Laxapana PLC.
S.D.R. Arudpragasam S. Rajaratnam
Chairman Director
13th August, 2025
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Statement of Changes in EquityLAXAPANA PLC
Interim Results For the Period Ended 30th June 2025
Group | Stated capital | ||||
Ordinary share capital Rs.'000 | Preference share capital Rs.'000 | Revaluation reserve Rs.'000 | Retained earnings Rs.'000 | Total Rs.'000 | |
Balance as at 1st April 2024 | 546,374 | 10 | 1,107 | 567,205 | 1,114,696 |
Profit for the Period | - | - | - | 19,029 | 19,029 |
Balance as at 30th June 2024 | 546,374 | 10 | 1,107 | 586,234 | 1,133,725 |
Balance as at 1st April 2025 | 546,374 | 10 | 1,107 | 621,229 | 1,168,720 |
Profit for the Period | - | - | - | 63,214 | 63,214 |
Balance as at 30th June 2025 | 546,374 | 10 | 1,107 | 684,443 | 1,231,934 |
Company | Stated capital | ||||
Ordinary share capital Rs.'000 | Preference share capital Rs.'000 | Revaluation reserve Rs.'000 | Retained earnings Rs.'000 | Total Rs.'000 | |
Balance as at 1st April 2024 | 546,374 | 10 | 1,107 | 489,028 | 1,036,519 |
Profit for the Period | - | - | - | 10,092 | 10,092 |
Balance as at 30th June 2024 | 546,374 | 10 | 1,107 | 499,120 | 1,046,611 |
Balance as at 1st April 2025 | 546,374 | 10 | 1,107 | 551,115 | 1,098,606 |
Profit for the Period | - | - | - | 47,703 | 47,703 |
Balance as at 30th June 2025 | 546,374 | 10 | 1,107 | 598,818 | 1,146,309 |
Figures in brackets indicate deductions.
The above figures are provisional and subject to audit.
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Statement of Cash FlowsLAXAPANA PLC
Interim Results For the Period Ended 30th June 2025
Group | Company | |||
For the Period Ended 30th June | 2025 Rs.'000 | 2024 Rs.'000 | 2025 Rs.'000 | 2024 Rs.'000 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Profit before tax | 94,217 | 28,397 | 65,703 | 15,279 |
Adjustments for ; | 14,343 | 13,815 | 10,559 | 10,462 |
Depreciation on property, plant and equipment | ||||
Depreciation on right-of-use asset | 2,119 | 2,478 | - | - |
Impairment loss/(reversal) on trade receivables and amounts due from related parties | (677) | - | (677) | - |
Interest expense | 23,610 | 22,108 | 8,201 | 13,607 |
Interest income | (2,674) | (1,465) | (2,514) | (552) |
Provision for retirement benefit obligations | 1,474 | 1,414 | 403 | 394 |
Provision/(Reversal) for slow moving inventories | 19,585 | 1,539 | 8,900 | 1,539 |
Operating cash flows before working capital changes | 151,997 | 68,286 | 90,575 | 40,729 |
(Increase) / Decrease in inventories | 105,948 | 2,343 | (39,094) | (114,439) |
(Increase) / Decrease in trade & other receivables | 5,968 | 46,884 | 6,996 | 35,128 |
(Increase) / Decrease in amounts due from related companies | (72,787) | (11,564) | (80,616) | (11,565) |
Increase / (Decrease) in amounts due to related companies | (1,141) | 1,174 | 545 | 1,174 |
Increase / (Decrease) in trade & other payables | (141,449) | 13,334 | 58,720 | 7,396 |
Cash generated from/ (used in) operations | 48,536 | 120,457 | 37,126 | (41,577) |
Income taxes paid | (9,474) | (13,448) | (9,474) | (13,448) |
Retirement benefit obligations paid | (484) | (184) | - | - |
Interest expenses paid | (23,001) | (18,406) | (7,592) | (9,905) |
Net cash flows generated from /(used in) operating activities | 15,577 | 88,419 | 20,060 | (64,930) |
CASH FLOWS FROM INVESTING ACTIVITIES | 2,674 | 1,465 | 2,514 | 552 |
Interest received loans | ||||
Short term loans granted to related companies | (50,000) | - | (50,000) | - |
Purchase & Construction of Property, Plant & Equipment | (662) | (627) | - | (215) |
Net cash flows (used in) / from investing activities | (47,988) | 838 | (47,486) | 337 |
CASH FLOWS FROM FINANCING ACTIVITIES | 387,320 | 461,012 | 96,310 | 360,482 |
Proceeds from loans and borrowings | ||||
Repayment of loans and borrowings | (411,153) | (570,632) | (94,375) | (292,646) |
Lease Rental Payment | (2,855) | (2,867) | - | |
Net cash flows generated (used in) / from financing activities | (26,688) | (112,487) | 1,935 | 67,836 |
Net increase/(decrease) in cash & cash equivalent | (59,099) | (23,229) | (25,491) | 3,243 |
Cash & cash equivalents at the beginning of the year | 61,250 | 48,209 | 44,995 | (36,073) |
Cash & cash equivalents at the end of the period | 2,151 | 24,980 | 19,504 | (32,830) |
Analysis of Cash & Cash Equivalents | 59,246 | 64,922 | 24,044 | 7,112 |
Cash in Hand & at Bank | ||||
Bank Overdraft | (57,095) | (39,942) | (4,540) | (39,942) |
2,151 | 24,980 | 19,504 | (32,830) | |
Figures in brackets indicate deductions.
The above figures are provisional and subject to audit.
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Notes to the AccountsThe figures stated above are provisional and subject to audit.
LAXAPANA PLC
Interim Results For the Period Ended 30th June 2025
Accounting Policies
The Interim Financial Statements have been prepared in accordance with the accounting policies and methods of computation which are consistent with those policies and methods followed during the financial year ended 31st March 2025, and also in compliance with LKAS 34 - Interim Financial Reporting.
Stated Capital
30 June 2025
30 June 2024
Issued & Fully Paid
No. of Shares
Rs.
No. of Shares
Rs.
Ordinary Shares
66,224,939
546,374,085
66,224,939
546,374,085
5% Cumulative Preference Shares
1,000
10,000
1,000
10,000
546,384,085
546,384,085
Contingent Liabilities
There were no material contingent liabilities, which require adjustment to or disclosure in the financial statements as at the reporting period.
Capital Commitments
There were no material capital commitments, which require adjustment to or disclosure in the financial statements as at the reporting period.
Events Occurring after Reporting Date
There have been no material events occurring after the reporting date that require adjustments to or disclosure in the Financial Statements.
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Share InformationLAXAPANA PLC
Interim Results For the Period Ended 30th June 2025
Public Holding
The percentage of shares held by the public as at 30th June 2025 was 19.99% and the number of public shareholders as at that date was 1,873.
The Company was not in compliance with the Minimum Public Holding requirement specified in Rule 7.13.1 (i) (a) as at 30.06.2025. Due disclosure has been made to the Colombo Stock Exchange in this regard.
The applicable option under CSE Rule 7.13.1(i) (a) on minimum public holding is option 5 and the Float Adjusted Market Capitalization as of 30.06.2025 was Rs.423,627,689.80.
Shareholdings of the Directors
DIRECTORS' DIRECT SHAREHOLDING
30-Jun-25
No. of Shares
30-Jun-24
No. of Shares
Mr. S.W. Gunawardena
134,612
113,500
Mr. S. Rajaratnam
500,000
500,000
Market Prices Recorded During the Quarter Ended
30-Jun-25
Rs.
30-Jun-24
Rs.
Highest Price
32.70
18.00
Lowest Price
27.50
15.70
Last Traded Price
31.80
16.70
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LAXAPANA PLC
Interim Results For the Period Ended 30th June 2025
Major Shareholders as at 30th June 2025
# | NAME | NO. OF SHARES | PERCENTAGE |
1. | E.B. Creasy & Company PLC | 27,712,378 | 41.85% |
2. | Amana Bank PLC/E.B. Creasy & Company PLC | 17,500,000 | 26.43% |
3. | Sampath Bank PLC/Senthilverl Holdings (Pvt) Ltd | 8,349,967 | 12.61% |
4. | Hatton National Bank PLC/Sri Dhaman Rajendram Arudpragasam | 6,500,000 | 9.82% |
5. | Mr. Sanjeev Rajaratnam | 500,000 | 0.76% |
6. | Mr. Degiri Madhawa Pushpakumara De Zoysa | 400,000 | 0.60% |
7. | Colombo Fort Investments PLC | 315,000 | 0.48% |
8. | Colombo Investment Trust PLC | 310,000 | 0.47% |
9. | Cargills Bank Limited/Senthilverl Holdings (Pvt) Ltd | 223,307 | 0.34% |
10. | Mr. Henry Anthony Rohan Pieris | 200,000 | 0.30% |
11. | People's Leasing & Finance PLC/Dr.H.S.D.Soysa & Mrs.G.Soysa | 175,092 | 0.26% |
12. | Mr. Zoebaly Gulamabass Carimjee | 143,482 | 0.22% |
13. | Mr. Sanjeewa Wijesiri Gunawardena | 134,612 | 0.20% |
14. | Dr. Athugodage Aruna Mahesh Dharmadasa | 109,525 | 0.17% |
15. | Mr. Manimel Wadu Madhusanka Dinesh Weeraratne | 100,000 | 0.15% |
16. | Mr. Muthuthanthrige Stephen Angelo Fernando | 96,743 | 0.15% |
17. | Mrs. Luxshmi Shermila Rajaratnam | 86,480 | 0.13% |
18. | Mr. Nishantha Anuruddha Weerasinghe | 75,800 | 0.11% |
19. | Mr. Abeysiri Hemapala Munasinghe and Mr. Abeysiri Ranjith Ruchiranga Munasinghe | 75,000 | 0.11% |
20. | Mr. Abeysiri Hemapala Munasinghe and Miss. Abeysiri Vithanage Kavindi Munasinghe | 75,000 | 0.11% |
21. | Mr. Mohamed Hanif Aslam Kamil | 67,000 | 0.10% |
22. | Mrs. Zenab Mohamedi Adamally | 66,666 | 0.10% |
23. | People's Leasing & Finance PLC/Mr.A.A.J.Fernando | 66,500 | 0.10% |
63,282,552 | 95.56% |
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Corporate InformationLAXAPANA PLC
Interim Results For the Period Ended 30th June 2025
NAME OF COMPANY
Laxapana PLC
LEGAL FORM
A Public Quoted Company with limited liability Incorporated in Sri Lanka under the Companies Ordinance No 51 of 1938 on 13th August 1956.
COMPANY REGISTRATION NUMBER
PQ 170
BOARD OF DIRECTORS
S.D.R. Arudpragasam
FCMA (Chairman)
S. Rajaratnam
B.Sc., CA.
R.C.A. Welikala
S.W. Gunawardena
B.Sc., MBA
A.D.T. Mendis
FCCA-UK, ACA, MCSI-UK, MBA(USQ-AUS),
BSc Finace Special (Hons)
K.G. Punchihewa
FCA, CPA (Aus).
S.B. Perera
FCMA/CGMA (UK) B.Sc.Mech.Eng.(Hons.)
P.Y.S.Perera
FCA,FCMA (UK)
SUBSIDIARY
Sterling Steels (Private) Limited
Credit Rating
BB+ Positive
STOCK EXCHANGE LISTING
The Ordinary Shares of the Company are listed with the Colombo Stock Exchange of Sri Lanka.
SECRETARIES
Corporate Managers & Secretaries (Private) Ltd. 8-5/2, Leyden Bastian Road,
York Arcade Building, Colombo 1.
REGSTERED OFFICE
98, Sri Sangaraja Mawatha, Colombo 10.
AUDITORS
KPMG, Chartered Accountants,
32, Sir Mohamed Macan Markar Mawatha, Colombo 3.
BANKERS
Hatton National Bank PLC Commercial Bank of Ceylon PLC Sampath Bank PLC
Union Bank of Colombo PLC DFCC Bank PLC
People's Bank Seylan Bank
LEGAL ADVISERS
Messrs Julius & Creasy
P.O. Box 154, Colombo - 1.
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