Graphite manufacturer Bogala Graphite Lanka PLC posted a net loss of Rs.18.69 million compared to a net profit of Rs.10.52 million year-on-year (yoy) for the second quarter ended June 2015 (2Q15) with a net loss per share of Rs.0.40 compared to a Rs.0.22 earnings per share yoy.

Revenue remained flat at Rs.141 million while the main contributor to the loss was cost of sales which increased to Rs.105.74 million from Rs.89.13 million yoy.

Selling and distribution costs increased to Rs.23.91 million from Rs.18.39 million yoy despite a fall in fuel prices, while administrative expenses increased to Rs.26.48 million from Rs.23.38 million yoy and an exchange loss of Rs.1.57 million was incurred compared to an exchange gain of Rs.2.72 million yoy due to the revaluation of an Euro loan.

Finance costs fell to Rs.2.81 million from Rs.3.58 million yoy and finance income fell to Rs.575.050 from Rs.1.28 million yoy due to reduced interest rates.
The total assets decreased to Rs.515.20 million from Rs.528.81 million in 1Q15 through a reduction in cash with net assets per share falling to Rs.5.52 from Rs.5.92, while total equity fell to Rs.261.37 million from Rs.280.06 million in 1Q15 through the release of retained earnings.

Total long and short term borrowings increased to Rs. 162.2 million from Rs. 170.37 million in 1Q15.

Germany-based Graphit Kropfmuhl GmbH continues to own 90.33 percent of the shares despite US-based Alterna Capital Partners LLC agreeing to acquire 10.33 percent of the shares in Bogala Graphite Lanka and 40 percent of shares in Graphit Kropfmuhl for a combined price of US$ 38 million in 1Q15.