Aitken Spence 4Q net profit steady despite revenue drop

26 May 2015 05:31 am Views - 2576

Blue-chip Aitken Spence PLC saw its net profit for the March quarter (4Q15) steady at Rs.1.38 billion despite revenue dropping to Rs.9.45 billion from Rs.11.1 billion a year ago. 
Earnings per share deteriorated to Rs.3.41 from Rs.3.36. The company announced Rs.2 per share dividend for FY2014/15.
A significant drop in raw materials and consumables used— from Rs.4 billion to Rs.1.6 billion— helped the group to keep the operational profits at the same level as of the corresponding quarter of the previous year.
The state-directed fuel price reduction must have helped the group to cut costs. 
The group operated a 100MW diesel power plant in Embilipitiya and the power purchase agreement it had with the Ceylon Electricity Board expired this April. 
The other two power plants in Horana and Matara, of which the power purchase agreements expired last year, were divested. 
For the year ended March 31, 2015 (FY15), the group net profit fell marginally to Rs.3.5 billion. 
The group incurred Rs.1.5 billion under depreciation, amortization and impairment of intangible assets, up from Rs.409 million in the corresponding quarter of the previous year.
The earnings per share fell to Rs.8.82 from Rs.9.04.