Singer 4Q performance reflects recovering consumer strength

Singer (Sri Lanka) PLC reported some turnaround performance in the quarter ended in March (4Q24) setting the company up for a continuous growth as the consumer demand is improving with interest rates at single digit levels and the recovering economy.
The company reported revenue of Rs.16.15 billion in the January – March quarter, up 24 percent from the same period last year when the consumer was under the shackles of higher interest rates and taxes.
While taxes are higher than they were a year ago, the rupee has now appreciated, partly reversing some of the sharper increases in prices of the goods, and the lower interest rates are also making accessing goods easier.

For instance, consumer electronics and home appliances have grown by 120 percent and 47 percent respectively to Rs.1.57 billion and Rs.6.15 billion respectively between the two periods, reflecting that the consumer demand is returning faster.
Sales for IT products which capture the smartphones and personal computers however declined 28 percent to Rs.2.75 billion.
The company also saw some softening in its costs as direct costs rose by 18 percent during the quarter over the same period last year, perhaps in a sign of the favourable impact from the rupee strength. The rupee has appreciated by over 20 percent from the beginning of 2023.

The company reported an operating profit of Rs. 1.15 billion, up 185 percent from the same period in 2023.
The net finance cost fell sharply to Rs.359.4 million from 1.20 billion a year ago as the company is seeing benefits from the declining interest rates.
The company under this backdrop reported earnings of 32 cents a share or Rs.361.7 million in the quarter, which is the company’s fourth fiscal quarter compared to a loss of 69 cents a share or Rs.780.5 million reported a year ago.
Hayleys group has 87.28 percent stake in Singer Sri Lanka while Dammika Perera separately owns 1.79 percent stake in the company.