Exchange gains, export business boost Hayleys 1Q

Backed by its dollar-generating export businesses, Hayleys PLC, controlled by business magnate and the current Member of Parliament Dhammika Perera, saw its net profits surging nearly 400 percent for the quarter ended on June 30, 2022 (1Q23), the interim financial accounts released to the Colombo Stock Exchange showed. 

The group, which has some solid export businesses under its wing, recorded earnings of Rs.13.99 per share or Rs.10.5 billion for 1Q23, compared to earnings of Rs.2.9 per share or Rs.2.1 billion reported for the same period, last year. 

The revenue for the quarter rose 75 percent year-on-year (YoY) to Rs.123.6 billion while the gross profits rose 99 percent YoY to Rs.32.4 billion. The operating profits rose 178 percent YoY to Rs.18.1 billion.

The group’s finance cost rose 366 percent YoY to Rs.11 billion for the quarter amid higher interest rates in the economy, while its finance income rose over 1,800 percent YoY to Rs.12.8 billion amid the sharp depreciation of the rupee against the dollar, resulting in a net finance income of Rs.1.7 billion.

“The rupee depreciation positively affected the export companies under the group, which resulted in increase in the top line and bottom line,” Hayleys said in a note to its financial accounts.      All the business segments of the group reported higher revenues and operating profits for the quarter under review and out of which, hand protection, purification products, textiles and transport and logistics made the highest gains.   Perera owns 51 percent of the issued shares of the company.