Haycarb records Rs. 8 b turnover, Rs. 601 m PBT in 3Q

Saturday, 7 February 2015 01:10 -     - {{hitsCtrl.values.hits}}

Haycarb Plc, the Sri Lankan multinational of the Hayleys Group, reported a turnover of Rs. 8 billion and profit before tax of Rs. 601 million for the nine months ending 31 December 2014. The profit after tax stood at Rs. 508 million. Haycarb Plc Managing Director Rajitha Kariyawasan said that the continuation of the high raw material prices in Sri Lanka and India and the inability to pass on the resultant cost increases to its customers impacted the profitability of the Sri Lanka operations significantly. He further explained that the requirement to increase product prices is evaluated and balanced against the need to retain key customer accounts and strategies formulated to capture new markets to grow the top line. The depreciation of the currencies in some of Haycarb’s key markets, notably the depreciation of the Euro, Australian Dollar and Japanese Yen, resulted in exertion of yet more pressure on product pricing. The challenges on cost increases were offset to some degree from cost reductions achieved through lean initiatives that helped reduce energy costs in manufacturing operations and increase productivity. The company is also looking into optimal usage and rebalancing of its manufacturing capacity along with restructuring measures in the supply chain to reduce costs in the medium-term. Haycarb continues to invest in development and commercialisation of specialised value added products, market expansion and brand presence. The Environmental Engineering Solutions arm, Puritas Ltd., made significant progress during the nine months under review as it increased its local and regional presence for small to medium-sized purification projects. This sector will remain a key focus for diversification and future growth of the Group. Kariyawasan added: “The industry outlook remains strong given the increasing demand for purification solutions globally. Haycarb is a strong and a leading player renowned for its product and technical excellence backed by a formidable supply chain and marketing network. We remain confident of the medium and long-term outlook.” Haycarb continues to support Maithreepura, a village in Padaviya in the North Central Province, where it implemented a key CSR project to provide purified drinking water to a community of over 1500 families affected by the Chronic Kidney disease (CKD) by constructing and commissioning a Water Purification Plant that includes a Reverse Osmosis (RO) system coupled with an extensive water distribution system. It is with great pleasure and satisfaction that we note other business sectors of the Hayleys Group funding five more villages/projects coordinated and managed through Puritas, to cover a total of six villages under the same Group initiative “Puritas Sath Diyawara”. Haycarb is the pioneer manufacturer of coconut shell activated carbon in any coconut producing country with manufacturing facilities in Sri Lanka, Thailand and Indonesia supported by marketing offices in the US, UK and Australia contributing net foreign exchange revenues with its value adding processes while remaining a leading and technologically superior manufacturer in its chosen segment. The Board of Directors of Haycarb Plc comprises Mohan Pandithage – Chairman, Rajitha Kariyawasan – Managing Director, Arjun Senaratna, Sarath Ganegoda, Dhammika Perera, Jeevani Abeyratne, Dushantha Ranaraja, Nimal Perera, Dr. Sarath Abayawardana and Sujeewa Rajapakse.