Singer ac­qui­si­tion ups Hay­leys top line, but lever­aged buy-out weighs on group prof­its

Daily Mirror (Sri Lanka) - - SPORTS -

The ac­qui­si­tion of Singer Sri Lanka PLC in a block­buster deal last year boosted Hay­leys PLC’S top line, but the lever­aged buy-out is now weigh­ing on the coun­try’s most di­ver­si­fied con­glom­er­ate’s bot­tom line per­for­mance.

The in­terim re­sults filed with the Colombo Stock Ex­change showed the Hay­leys group re­port­ing earn­ings of Rs.2.37 a share or Rs.178 mil­lion for the Oc­to­ber-de­cem­ber quar­ter (3Q18) com­pared to Rs.7.10 a share or Rs.532.5 mil­lion profit in the cor­re­spond­ing pe­riod, last year.

Although the two quar­ters are not com­pa­ra­ble due to the Singer ac­qui­si­tion in Septem­ber 2017, the heavy bor­row­ings that went into fund­ing the deal have led to shoot­ing up in the fi­nance cost from at least a bil­lion ru­pees for the quar­ter.

The net fi­nance cost for the quar­ter was flirt­ing with Rs.2.0 bil­lion for the quar­ter un­der re­view, while the pre­vi­ous year’s cor­re­spond­ing quar­ter fig­ure stood at Rs.960 mil­lion.

Chair­man/ceo Mo­han Pan­dithage

Co-chair­man Dham­mika Per­era

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