Royal Ceramics Lanka PLC (RCL) reported a earnings of Rs 9.2 million or 8 cents a share for the June quarter (1Q21), recording a slump of 97 percent Year-on-Year (YoY), driven by lower sales resulting from COVID-19 related lockdown measures in the quarter.
The group’s top line declined by 24 percent YoY to Rs 5.77 billion in the quarter with revenue from its key, tiles & associated products segment falling to Rs.3.3 billion from Rs.4.3 billion a year ago, the interim financial statements filed with the Colombo Stock
Royal Ceramics’ cost of sales fell by 20 percent YoY to Rs.3.9 billion in the quarter. Similarly, distribution expenses and administrative expenses declined at similar rates during the quarter.
All group business segments, except for packaging and finance, reported losses in the quarter. Tiles & associated products segment reported a loss of Rs. 206.87 million against a profit of Rs 109 million a year ago while sanitary ware segment doubled its losses of Rs.38.6 million in the quarter.
The losses were mainly due to a sharp increase in other operating expenses that jumped to Rs.277 million in the quarter from Rs. 11.57 million a year ago.
In segmental breakdown, tiles & associated products segment incurred Rs.224.6 million other operating expenses followed by Rs.35.8 million by sanitary ware segment and Rs.16.5 million by aluminium segment.
However, RCL didn’t elaborate the nature or reasons for the rise in other operating expenses.
RCL is expected to be benefit from the State-imposed import restrictions on a wide range of products including tiles and sanitary ware.
During the quarter, New York-based hedge fund, Briarwood Capital Partners and Nimal Perera exited from top 20 shareholders of the company.
Earlier, Briarwood Capital Partners and Nimal Perera held 1.78 percent and 1.66 percent stakes in the company respectively.
Dhammika Perera’s investment holding company, Vallibel One PLC has 56 percent stake in RCL while Employees’ Provident Fund has 13.8 percent stake, as the second largest shareholder of the firm.