Kenyan operations boost Sierra Cables 3Q profits

Leading electrical cable manufacturing company, Sierra Cables PLC (SIRA), posted a net profit of Rs.81.02 million for the quarter ended December 31, 2016 (3Q17), a 27.61 percent increase year-on-year (YoY).
Earnings per share increased to Rs. 0.15 from Rs. 0. 12 YoY.
Revenue increased to Rs. 1.10 billion from Rs. 729.10 million YoY, while cost of sales increased to Rs. 884.74 million from Rs. 569.37 million YoY.
This is the first quarter where SIRA’s Kenyan cable manufacturing unit has contributed towards the top line.
SIRA had invested US$ 2 million on the power transmission cable manufacturing plant in Kenya with a 500 tonne monthly capacity last year, and production started last October after receiving an advance order worth US$ 1 million. A further US$ 2 million factory expansion is expected in Kenya.
Net finance costs for the quarter increased to Rs. 45.14 million from 
Rs. 14.68 million YoY.

SIRA’s asset base increased to Rs. 4.33 billion from Rs. 3.26 billion at the start of the financial year, mainly through an increase in clients’ invoices.
Long-term loans fell to Rs. 95.16 million from Rs. 142.26 million in the same period.
For the nine months so far in the 2016/17 financial year, SIRA posted a net profit of Rs. 265.15 million, up from Rs. 218.85 million YoY.
Revenue increased to Rs. 3.02 billion from Rs. 2.33 billion YoY, while cost of sales increased to Rs. 2.36 billion from Rs. 1.81 billion YoY.
The company had received a Rs. 1 billion tender from Ceylon Electricity Board during the financial year.
SIRA is planning to invest 30 percent in a joint venture US$ 4 million cable manufacturing plant in Fiji with a 300 tonne monthly capacity.
As at December 31, 2016, Sierra Holdings (Private) Limited held 58.11 percent of SIRA, while SIRA Managing Director Shamendra Panditha held 3.24 percent.