A significant contraction in finance costs enabled Hayleys Group subsidiary, Dipped Products PLC (DPL) to post a net profit of Rs. 379.5 million for the three months ended March 31, 2013 as against 176.4 million during the corresponding period of the previous year, interim financials released to the Colombo Stock Exchange revealed.
Net finance costs fell 73 percent Year-on-Year (YoY) to Rs. 40.0 million during the quarter under review.
DPL accounts for 5 percent of the global non-medical rubber glove market. As at March 31, 2012 the Employees Provident Fund was the second largest shareholder of the company with a stake of 13.06 percent.
Commenting on the performance, DPL Chairman Mohan Pandithage stated that the company’s pre-emptive marketing strategies were core to its ability to overcome global market challenges.
“DPL’s engagement process with existing and new customers enabled the company to offer solutions that better matched their market requirements,” Pandithage said.
He added that the intensive marketing efforts during the year also enabled DPL to penetrate into new markets such as Eastern Europe including Russia.
Turnover of the company increased 22 percent YoY to Rs. 6.3 billion during the quarter under consideration while an increase in other income too contributed significantly to DPL’s bottom line.
Other income stood at Rs. 78.5 million during the period as against Rs. 60.5 million during the corresponding period of the previous year.
Meanwhile DPL Managing Director, Dr. Mahesha Ranasoma cited that in addition to marketing efforts, internal cost management through Lean Manufacturing was key to the year-end performance whilst declining natural rubber prices through the year enabled a favourable price regime.
Further Earnings per Share (EPS) of the company stood at Rs. 6.34 during the period as against Rs. 2.95 during the previous year.
However during the year ended March 31, 2013 DPL net profit fell 26 percent YoY to Rs. 1.4 billion as a result of a substantial YoY decrease of 90 percent in other income to Rs. 126.8 million during the year under review.
The company’s EPS during the year stood at Rs. 23.69 in comparison to Rs. 31.84 in the previous year.