Hayleys Fabric December profits down 83%

The Hayleys group knitted fabric manufacturing unit, Hayleys Fabric PLC, reported a net profit of 6 cents a share for the quarter ending December 2016, against 34 cents a share recorded during the same quarter last year, the interim report of the company showed. 
The net profit for the quarter accordingly was Rs.12.15 million, a sharp 83 percent decline from a year ago. This is the third quarter in a row the company’s profits have fallen.
According to the financials, the performance has been affected by the 5.0 percent fall in revenues to just over Rs.2.0 billion for the quarter. The cost of sales were contained by 3.0 percent year-on-year (YoY) but was not enough to reverse the trend in profits as the administrative expenses rose. 
Meanwhile, for the nine months ended in December 31, 2016, the company reported earnings of 36 cents against Rs.1.00 a share a year ago. This translates into a cumulative net profit of Rs.75.6 million, down 64 percent YoY. 
During the financial year ended March 31, 2016, the company made a net profit of Rs.261.6 million, recording an increase of 190 percent YoY, marking a year of recovery.
Hayleys Fabric PLC, which was formerly known as Hayleys MGT Knitting Mills PLC, was rebranded in July 2015 to align with the brand value of its parent, Hayleys.
The company offers end-to-end solutions from design, development, printing, brushing and sueding of pure and blended polyester and cotton fabrics and delivers 2.5 million metres of fabric each month to apparel manufacturers from the factory located in Narthupana Estate, Neboda in the Western Province.    
The company launched its own branded fabric ‘Inno’ in February 2014 moving up in the value chain through innovation.  
Hayleys Fabrics PLC is an indirect exporter as it supplies to the local garment manufacturers. 
As of December 31, 2016, Hayleys PLC held a 58.96 percent stake in the company followed by a 5.42 stake by Ceylon Investment PLC and 5.24 percent by Ceylon Guardian Investment Trust PLC. 
The state-controlled private sector pension fund, the Employees’ Provident Fund, had a 2.67 percent stake in the company being the fourth largest shareholder.