Royal Ceramics 3Q earnings up 157% YoY

Porcelain and ceramic manufacturer, Royal Ceramics Lanka PLC Group (RCL) saw its revenue for the quarter ended 31 December 2023 (3Q24) expand by 30 percent Year-on-Year (YoY) to
Rs, 22.93 billion.

The improvement in revenue can be attributed to the slower contraction in construction activities in the country towards the latter part of the year.
Royal Ceramics PLC Group acts as a near monopoly in the tiles and ceramics industry. It also has some interest in plantation and aluminium but at a much lesser scale compared to its outsize tile and related products business. For the period under review, the Group saw its distribution expenses increase by 15 percent YoY to Rs. 2.4 billion.

 Its administration expenses expanded by 33 percent to Rs. 1.15 billon. The finance expense dropped significantly by 60 percent to Rs. 430 million, whereas its finance income too showed significant contraction, dropping by 76 percent to Rs. 74 million from Rs. 309 million as recorded in 3Q23.

The group recorded a Profit Before Tax (PBT) of Rs. 4.37 billion, a 65 percent increase from the corresponding period of last year. While earnings per share for the three months ended 31 December 2023 increased to Rs. 2.68 from Rs. 1.04 in 3Q23, the profits attributable to shareholders expanded by 157 percent YoY to Rs. 2.9 billion.
Vallibel One PLC, the investment vehicle of investor Dhammika Perera, has 55.96 percent stake in Royal Ceramics, while the Employees’ Provident Fund has 13.79 percent stake, being the second largest shareholder.