Sri Lanka’s largest and the most outstanding aluminium and copper cable manufacturer with footprints in international markets has recorded an escalation in all-time revenue generation of Rs. 5.2 billion, an upswing by 7% from the previous year.
The Group also booked the highest ever profit after tax (PAT) of Rs. 314 million up 37.4% from FY20.
The cable company said: “The financial performance underscores the group’s ability to maintain a healthy Gross Profit margin (GP) of 15.6% and Net Profit margin (NP) of 5.7%.”
“This is a commendable performance considering the prevailing pandemic and turbulence environment that the company had to operate in.”
The revision to the company’s national long-term rating to AA- (lka) manifested as an encouraging exposure that gained the stakeholder confidence and enhanced the creditworthiness of the company. The company’s net finance cost reduced by 31.2% over the year due to the prudent financial planning and mitigation strategies the company adopted throughout the pandemic period.
Harsha Jayatunga, CEO, Sierra Cables PLC CEO, said: “Despite production cost escalation triggered by the gradual rise in the world copper, aluminium and other key raw material prices, company was able to reduce general overheads by adopting prudent cost rationalizing strategies.”
“We saw an improvement in group’s major key performance indicators that are of importance to our stakeholders,” he added.
Delivering his insights of the future of the industry in Sri Lanka, CEO Jayatunga said: “We have a very positive outlook on the Colombo International Financial City (Port City) and other proposed expansion initiatives of the government that are destined to bring in many financial and development benefits to the country. The Government’s initiative on these projects is a real encouragement, where we see all manufacturers including the players in the cable industry growing in terms of sales and profits due to such projects. We are also very honoured to take part as the major cable supplier to the majority of these projects.”
“With the import restriction of non-essential items, cables and other building materials that are locally manufactured have many prospects and the future outlook is very encouraging.”
“We believe we are geared to capture large-scale and public sector businesses due to the government stance in supporting local businesses which is very encouraging during these challenging market conditions,” he added.
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