Sri Lanka’s Haycarb Grown Revenues Amid Margin Squeeze!
Sri Lanka’s Haycarb Plc, a maker of activated carbon said profits fell 8.8 percent from a year earlier to 236 million rupees in the March 2014 quarter, amid rising input costs though the firm cut prices and won more business.
The group reported earnings of 7.95 rupees per share for the quarter. Haycarb closed at 190.90 rupees 3.90 rupees on Tuesday.
Group revenues grew 29 percent to 2.7 billion rupees and expenses rose at a faster 38 percent to 1.9 billion rupees, but the firm grew gross profits 10 percent to 778 million rupees.
Haycarb Managing Director Rajitha Kariyawasan said a slowdown in the gold mining industry had made the firm cut prices to retain market share.
New manufacturers from India, Philippines and Indonesia had also expanded capacity.
In the second half of the financial year raw material prices had increased steeply in Sri Lanka and the costs could not be passed onto customers.
Kariyawasan said the group had grown revenue and volumes and expanded to new markets, introduced new value added products and reduced energy costs.
Haycarb makes activated carbon from coconut shell charcoal.
It also has factories in Thailand and Indonesia.