Galadari Hotels (Lanka) PLC’s net loss widened during the June 2012 quarter as the hotel firm reported a net loss of Rs.323 million against Rs.18 million net loss it incurred in the corresponding period of the previous year.
According to the financial accounts released to the Colombo Stock Exchange, a huge exchange loss of Rs.331 million, originating from dollar denominated debt, has caused the company to incur such a quarterly loss, despite a hike in revenue and gross profits. For the six months ended June 30, 2012, the exchange loss the firm incurred was little over Rs.1 billion.
The revenue for the quarter under consideration rose to Rs.384 million from Rs.254 million recorded last year, while the net profit also grew to Rs.326 million from Rs.209 million.
The finance costs during the quarter also rose to Rs.39 million from Rs.26 million. The loss per share stood at Rs.1.77, up from 10 cents. The balance sheet of the company showed that it had an accumulated loss of Rs.9.7 billion and interest bearing borrowings and loans to the tune of Rs.7.4 billion as at June 30, 2012.
State-controlled pension fund, Employees’ Provident Fund as the second largest shareholder of the firm held a 13 percent stake in the firm as of the same date.