Hayleys group knitted fabric manufacturing unit, Hayleys Fabric PLC, turned a net loss of little under two million rupees or a loss per share of 1 cent from a profit of Rs.53 million a year ago for its January – March quarter (4Q17) as the revenues remained flat while the administrative and finance
According to the interim financials released to the Colombo Stock Exchange distribution cost also rose substantially from just Rs.1.6 million to Rs.18 million for the three months.
Although the revenue in rupee terms grew by just 3 percent to Rs.2.0 billion as the rupee depreciated against the dollar, in dollar terms the revenue remained flat.
Hayleys Fabric’s measurement currency is US dollar as the company does business in dollars.
Since the company receives revenue in dollars, make payments to its suppliers in dollars and obtain financing facilities in dollars, financial statements are also prepared in dollars.
Despite the quarter turning to red, the company managed to end the year with a net profit of Rs.73.6 million or 35 cents, but down from Rs.261.6 million net profit recorded for last year.
The revenue fell by 2 percent to Rs.8.3 billion.
The company offers end-to-end solutions from design, development, printing, brushing and sueding of pure and blended polyester and cotton fabrics and delivers 2.5 million metres of fabric each month to apparel manufacturers from the factory located in Narthupana Estate, Neboda in the Western Province.
The company was previously known Hayleys MGT Knitting Mills PLC and was rebranded in July 2015 to align the brand with its business and with the brand value of its parent, Hayleys.
The company launched its own branded fabric ‘Inno’ in February 2014 moving up in the value chain through innovation.
Meanwhile, the company took long-term borrowings of about US $ 4.24 million during the 12 months to March 31, 2017.
The net finance cost rose by 26 percent year-on-year to Rs.34 million during the March quarter while for the 12 months, the net finance cost rose from Rs.118.4 million to Rs.140 million.
As of March 31, 2017, Hayleys PLC held 58.96 percent stake in the company followed by 5.42 stake by Ceylon Investment PLC and 5.24 percent by the Ceylon Guardian Investment Trust PLC, units of Carson group.
The state-controlled private sector pension fund, Employees’ Provident Fund held 2.67 percent stake in the company being the fourth largest shareholder.