- Reduces leverage by cutting debt in significant proportions
Singer Sri Lanka PLC witnessed strong business across nearly all of its verticals led by IT products such as smartphones and laptops as people shifted their work, education and entertainment online as new coronavirus upended people’s usual lifestyles.
According to the interim results for October-December 2020 quarter (3Q21), the consumer durables juggernaut reported revenues of Rs.18.7 billion, up 20 percent from the same period in 2019.
IT products led pack with revenues jumping from Rs.4.3 billion to Rs.7.0 billion during the quarter, while the consumer electronics and home appliances delivering Rs.2.1 billion and Rs.5.1 billion respectively, compared to Rs.2.2 billion and Rs.4.7 billion in the year earlier period.
“The group continued to pursue an aggressive sales drive leveraging its extensive branch and dealer network and digital capabilities. Demand for IT products remained strong during the quarter reflecting increased digital adoption due to remote working and online education arrangements,” Singer Sri Lanka said in a press release.
Singer Sri Lanka share ended at Rs.59.10 yesterday, Rs.2.40 or 4.23 percent higher.
The group’s eponymous sewing machines business known for generations generated revenues of Rs.718.1 million, up from Rs.684.7 million.
Meanwhile, the company’s furniture business generated revenues of Rs.768.3 million compared to Rs.758.6 million a year ago.
Financial services business of the group carried out via its subsidiary Singer Finance Lanka PLC reported revenues of Rs.1.9 billion during the three months under review compared to Rs.2.0 billion a year ago.
The group reported an operating profit of Rs.1.32 billion in the three months, little changed from the same period in 2019.
The stronger performance enabled Sri Lanka to cut its gearing as it settled loans and leases to the tune of nearly Rs.12 billion in the nine months to December 31, 2020, which substantially reduced its finance costs.
Its net finance cost fell drastically to Rs.110.1 million from Rs.718.2 million in the corresponding period in 2019.
The group reported earnings of Rs.2.22 a share or Rs.834.7 million in the quarter under review compared to 82 cents a share or Rs.306.7 million in the same period a year earlier.
As at December 31, 2020, businessman Dhammika Perera-controlled Hayleys group held 90.42 stake in Singer while Perera held 1.85 percent under his personal account.