Haycarb records turnover of Rs. 5.2 billion for 1H 2014/15
The Sri Lankan multinational Haycarb PLC reported a turnover of Rs. 5.2 billion and profit before tax of Rs. 362 million for six months ending 30th September 2014, a company media release said.The company's profit after tax stood at Rs. 304 million.
Haycarb PLC Managing Director, Rajitha Kariyawasan was quoted as saying, "the continuing trend of high raw material prices in Sri Lanka and India combined with the inability to transfer the resultant cost increase adequately to its customers, affected the performance of Sri Lanka operations adversely. The increase in raw material prices in Indonesia and in Thailand also impacted on the Group results negatively." He further explained that "the Company balances the requirement to increase prices with the need to retain and grow key customer accounts and new markets to drive its medium to long term growth strategy".
Significant cost savings were achieved through Lean and Cost reduction initiatives to mitigate the impact of drop in gross margins to a certain degree, according to the release which said that the company is rationalising its product portfolio and manufacturing capacities, whilst investing in development and commercialisation of new value added products.
The company continues to expand its geographical market reach and growth in key markets to capitalise on the emerging trends in the activated carbon and purification solution segments, it added.
"Puritas (Pvt.) Ltd., the environmental engineering arm of the Haycarb Group has made progress in its water systems projects in Sri Lanka and overseas.
The growth in this sector is expected to be significant," the release said.