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JKH posts Rs.2.4bn net for July - Sept quarter


12 November 2012 03:20 am - 0     - {{hitsCtrl.values.hits}}


John Keells Holdings (JKH), the largest company listed in the Colombo Stock Exchange (CSE) in terms of market capitalization, has recorded a net profit of Rs.2.4 billion for the September quarter (2Q13), up by 59 percent Year-on-Year, the interim accounts released to the CSE showed.

The revenue during the quarter under consideration rose 17 percent YoY to Rs.20.6 billion, boosting the group’s consolidated gross profit by 21 percent YoY to Rs.4.5 billion.

The other operating income of the group during the quarter rose 332 percent YoY to Rs.835 million while finance income rose 39 percent YoY to Rs.980 million. Gains from associate companies also rose 46 percent YoY to Rs.1 billion.

The basic earnings per share stood at Rs.2.83 for the September quarter against Rs.1.80 reported in the corresponding quarter of the previous year.

The consolidated net profit for the first half (1H13) also rose 48 percent YoY to Rs.4 billion, amidst strong revenue and gains from other income.

JKH Chairman Susantha Ratnayake said that the transportation sector of the group reported a pre-tax profit of Rs. 1.02 billion, which was an increase of 57 YoY.

“The Group concluded the joint venture in respect of its current freight forwarding businesses in India and Sri Lanka with Norbert Dentressangle S.A. of France,” he said.

The City Hotels and the Maldivian Resorts of the group boosted the pre-tax profit of the leisure sector during the September quarter by 42 percent YoY to Rs.945 million.

According to JKH Chairman, City Hotels increased market share during the quarter while Maldivian Resorts witnessed higher occupancies. However, he noted that Sri Lankan resorts and destination management companies were adversely affected as a result of a disappointing summer.

The property sector recorded a pre-tax loss of Rs. 258 million for the second quarter, as against a loss of Rs. 11 million recorded in the corresponding period of the previous year.

“This is as a result of provisioning against preliminary project development costs. The progress of ‘OnThree20’ is on schedule and construction has progressed up to the 17th floor. Construction of the 140,000 square foot‘K Zone’ mall in Kapuwatta, Ja-Ela is nearing completion,” Ratnayake said.

The consumer foods and retail segment’s PBT (profit before tax) of Rs. 288 million was a decrease of 11 percent over the second quarter of the previous year

Volumes of carbonated soft drinks were lower than expected amidst challenging market conditions resulting in lower consumption while ice cream volumes witnessed marginal growth.

The financial services sector led by Nations Trust Bank PLC reported a PBT of Rs. 323 million, an increase of 21 per cent over the second quarter of the previous year

The Information Technology industry group PBT of Rs. 56 million was an increase of 17 per cent over the second quarter of the previous year.

“This increase was largely as a result of the improved operations of the Business Process Outsourcing (BPO) operations in India compared with the corresponding period in the previous year. The BPO business continued to experience growth in revenue through the acquisition of new customers. The Group divested its stake in the Chicago based associate Quattro FPO Solutions (Pvt) Limited for a consideration of US Dollars 4.5 million,” JKH Chairman said.

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