Bogala Graphite Lanka PLC, a unit of Germany’s AMG Mining, saw its net profits falling sharply by 65 percent year-on-year (YoY) to Rs.10.66 million for the quarter ended March 2015.
Revenue fell by 20 percent YoY to Rs.131.14 million due to delays in orders placed by the company’s traditional client from the United States, while cost of sales increased by 8 percent to Rs.94.36 million, creating an even greater fall in gross profits to Rs.36.78 million, a 52 percent fall YoY.
While other costs remained stable, the group gained Rs.17.97 million from foreign exchange due to a revaluation of a loan worth 1.13 million euros amid the weakening of the European Union’s (EU) currency.
The group’s assets decreased to Rs.528.81 million from Rs.534.44 million for the quarter ending December 2014, mainly contributed by a Rs.10.2 million fall in non-current assets, while net assets per share increased to Rs.5.92 from Rs.5.69.
Equity increased to Rs.280.01 million from Rs.269.40 million during the three months, mainly via retained earnings, while liabilities decreased to Rs.248.76 million from Rs.265.03 million through reduced borrowings.
Germany’s AMG Mining AG, which is a subsidiary of Netherlands-based AMG Advanced Metallurgical Group N.V, owns 90.33 percent of the shares in Bogala Graphite. Recently, US-based Alterna Capital Partners LLC entered into an agreement with the parent company to purchase 40 percent of the shares in the German subsidiary and 10.33 percent in Bogala Graphite.