Browns Group 1H pre-tax profits skyrocket by 6040% to cross Rs. 2 b mark

Thursday, 25 November 2010 01:21 -     - {{hitsCtrl.values.hits}}

The Browns Group posted revenue of Rs. 6.2 billion for the period ended 30 September 2010, which was an increase of 58% as against the same period last year.

The Group also recorded for the first six months a profit before tax of Rs. 2.02 billion – a growth of 6,040%. The Group also made a net profit of Rs. 1.9 billion for the same period.

Commenting on the performance, Group Managing Director/CEO Murali Prakash said: “This is a significant achievement for the Group since it clearly validates our strategy adopted during the last couple of years.”

He further stated that these significant achievements would propel the organisation to greater heights and that it was “now geared to deliver results of similar nature as we go forward”.

At present the Browns Group hold the market leadership in seven segments it operates; namely, vehicle batteries, two and four wheel tractors, marine engines, office automation equipment, radiators and power tools. The Group’s trading and manufacturing divisions have all performed well with significant growth been shown in all sectors.

The Browns Group today is not only a trading/manufacturing entity but a strategic investment vehicle that seeks as part of its corporate strategy, to identify and venture into sunshine industries that are fast becoming the future of the national economy.”

These investments have begun to show good results and helped the Group move to its vision to be a leading Sri Lankan conglomerate.

In the financial sector, the Browns Group has acquired a 9.55% stake in Seylan Bank PLC and holds a stake of 6.9% in Hatton National Bank PLC, thus strengthening its presence in this sector.

In the plantation sector, the Group acquired Maturata and Pussellawa Plantations in collaboration with Taprobane Holdings and has made significant post-consolidation contribution to the bottom line. There are 31 tea estates and nine rubber estates belonging to the above plantations

The company continued to provide management input through the 49% stake held in Galoya Plantations by the consortium (Brown & Company PLC and Lanka Orix Leasing Company PLC) as a part of the public-private partnership initiated with the Government to revive the sugar industry.

This strategic investment is well under way to become fully operational by 2012.

In the tourism and leisure sectors, Browns Investments staked a 30% claim in LOLC leisure, which in turn now controls the Confifi group of hotels.

The Browns Groups most current investments were made into the construction and power generation sectors through its investments into Sierra Holdings and Sierra Constructions Private Limited and hydro power through Free Lanka Limited.

The Browns Group expansion strategy, based on not compromising the core values and building on the core competencies will continue.

The group will continue to invest in sunshine industries, thus securing itself as a leading Sri Lankan conglomerate whilst ensuring greater shareholder value to all its stakeholders.

The Brown & Company Board consists of Rohini Nanayakkara (Chairperson), Ajith Devesurendra (Deputy Chairman), Murali Prakash (Group Managing Director/CEO), I.C. Nanayakkara (Director), Shanker Somasunderam (Director), R.N. Asirwatham (Director) and Janaka de Silva.