Economy

Hemas earnings up by 59.2%

18 Feb 2011 - {{hitsCtrl.values.hits}}

Hemas PLC recorded a turnover of Rs 4.7 Billion for the quarter ending December 2010 with earnings of Rs 311 million. For the nine month period the company recorded earnings of Rs 900 million from a turnover of Rs 13.4 billion according to a review made by CEO Husein Eusafally. This is an increase of 18.2% over last year in revenue.

The revenue has been bolstered by strong growth in the Power, Healthcare and Transportation and the Leisure sectors.

The groups FMCG sector also recorded revenue of Rs 4.4 billion for the nine months which is a 10% growth from last year. According to the statement there has been an impact on the margins due to increased prices of raw materials and a CESS on imports and profits declined by 7.8% due to this factor. Also the company re launched its sanitary napkins "Fems" and snack food Mr. Pops and the response is satisfactory the statement added.

Healthcare sector revenues were bolstered by Hemas Pharmaceuticals where both the top line and bottom line grew by 26%. Also the company has signed up with Mankind which specializes in Acute and Chronic therapies. The steady growth of the hospital business has grown revenue by 77% and the new laboratory at Ragama has delivered good results. Leisure sector revenue grew by 47% in the nine months recording Rs 879 million. All hotels under the company are currently operating at high occupancies and are enjoying higher room rates.

Sector profits for the nine months ended 31 December 2010 closed at Rs 1.3 million compared to a loss of Rs 25.5 million a year ago.

Transportation recorded growth as well recording a profit of Rs 197 million for the nine months. A significant increase in passenger and cargo volumes in Aviation Services businesses, and enhanced transshipment volumes in the Maritime segment and growth in the freight business, resulted in all areas contributing well stated the CEO.

Lastly the power sector revenues hit Rs 2.4 billion mark for the period and the profits from this sector stood at Rs 235 million. The thermal power plant Heladhanavi generated 482.4Mn KWH of energy while the mini hydro plants generated 16.0Mn KWH, reflecting plant factors of 73% and 53% respectively. It has been noted that 45% of the profits generated from the Hemas power sector came from the Hydro sector due to good rainfall in catchment areas.

Ending the group performance statement Esufally said despite the recent floods affecting demand for consumer products they hope to record a strong financial year with healthy growth.

Economy

Hemas earnings up by 59.2%

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