Hemas net profit for June quarter up 32% to Rs. 347mn
The net profit of Hemas Holdings for the June quarter (1Q13) rose 32.3 percent yearon-year (YoY) to Rs.347 million, despite significant increases in administrative expenses and finance costs, the interim financial accounts of the group showed.
The revenue during the quarter under consideration rose 27.1 percent YoY to Rs.6.3 billion, while the group’s gross profit stood at Rs.1.8 billion, up 18.3 percent YoY.
The administrative expenses during the period rose 22.4 percent YoY to Rs.971 million, while the finance costs increased 9.8 percent YoY to Rs.68.5 million. The group incurred a Rs.18.7 million foreign exchange loss during the quarter on a US dollar loan it had obtained.
The earnings per share (EPS) during the quarter stood at 66 cents, up from 50 cents recorded in 1Q12.
Meanwhile, apart from the power sector, all the other sectors of the group recorded increased profits, with the FMCG sector being the key contributor with a profit of Rs.163 million, up from Rs.117.6 million recorded in 1Q12.
“Sector revenues were driven by the growth in our hair care, skin care, personal wash and home care categories,” Hemas said in a statement.
The healthcare operations of the group posted a profit of Rs.142 million, while the leisure sector recorded a Rs.6.3 million against a loss of Rs.26 million in 1Q12.
“Our hospitals business enjoyed a good quarter with both the hospitals recording the highest monthly revenues achieved since incep- tion. Construction of our third hospital at Thalawathugoda commenced during the quarter and we expect the facility to be operational by mid next year,” Hemas said.
The group also said that the profitability of its leisure operations was impacted by a weakening rupee resulting in exchange losses on foreign currency borrowings, although the majority of which were unrealized translation losses.
The transportation business of the firm recorded a net profit of Rs.68 million, up from Rs.42 million in the same quarter of the previous year.
However, the power sector’s profits during the quarter fell to Rs.40 million from Rs.87 million recorded in 1Q12.
“The power sector recorded a revenue growth of 52.3% led by an increase in revenue at our thermal power plant Heladhanavi due to the pass through effect of increasing furnace oil prices. However, sector profitability plunged by 54.4% to record Rs.30 million due to exchange losses on foreign currency borrowings at Heladhanavi, a greater part of which is a result of translation losses, which has no cash flow implication. The low rainfall experienced by our hydropower plants continues to hamper sector profitability. The sector will continue to focus on new opportunities to diversify and grow the business,” Hemas said.
“The performance of the group as a whole and many of our sectors was encouraging despite a challenging economic environment where inflation, interest rates and exchange rates remained unfavourable,” Hemas Chairman Husein Esufally noted.