ACL Cables Group ups 2Q net profit by 270% to Rs. 5.1 b

Wednesday, 30 November 2022 00:00 - - {{hitsCtrl.values.hits}}

ACL Group Chairman Upali Madanayake (left) and Managing Director Suren Madanayake

Continuing its landmark achievement of a mammoth 705% year-on-year (YOY) growth in Q1 2022, ACL Cables PLC, has posted a 270%, YOY growth in Q2 2022 for the period ended in September 2022, with Rs. 5.1 billion as Net Profit after Tax as a Group, compared to Rs. 1.4 billion in the same period last year.

As a company, ACL Cables PLC posted Rs. 1.9 billion Net Profit for the same period with a growth of almost 250% in comparison to Q2 2021, which is a similar performance to its group.

Most significantly, the group as well as the company was able to match its total net profit recorded for the last financial year by the end of Q2 this year, despite challenging business conditions.

Revenue for the Group was Rs. 16.9 billion, while the company revenue was recorded at Rs. 9.3 billion.

As a result of the significant cost saving initiatives adopted, both the Group and Company maintained a notable decrease of 30% & 18% in its cost of sale respectively for the period under review. Additionally, distribution and administration costs were also maintained at a minimal rate.

Managing Director Suren Madanayake said: “This has been a great success for us as a Company and a Group. Our cost saving programs that were initiated immediately after the COVID-19 pandemic have paved the way for us to gain impressive numbers this year. I believe we need to maintain these figures for the coming months, as the immediate future looks more challenging than the period we have concluded.”

“We have developed effective cost control systems that will not diminish our business efficiencies. This model and procedure will be extended more within the Group to strengthen our numbers for the incoming financial quarters. I am extremely confident that we could end the second quarter on a similar higher note and set the ideal foundation for another promising year ahead,” he added.

Q2 growth reflects ACL Cables trajectory toward strong growth achieved in the previous financial year. ACL Cables recorded Rs. 36 billion revenue with a 60% YOY growth and Rs. 5.2 billion net profit with 200% annual growth as a group for the financial year ended 31 March 2022. The Company recorded a Rs. 19.8 billion revenue with a 51% YOY growth and Rs. 2.1 billion net profit with 187% annual growth as a Group for the financial year ended 31 March 2022.