Hemas records Rs. 1.3 b after tax profit in FY12

Wednesday, 30 May 2012 00:51 - - {{hitsCtrl.values.hits}}

The Hemas Group said yesterday it has recorded Rs. 1.3 billion profit after tax whilst Group revenue reached Rs. 21.4 billion, recording 18.5% growth.

Revenue growth was driven by Healthcare, FMCG and Power sectors. While earnings for the first half were down by 17.2%, performance bounced back strongly during the third and fourth quarters to close the year with earnings of Rs. 1.2 billion.

The FMCG business grew revenues and earnings by 14% and 10.7% respectively, which was a good result after a difficult first half. The Healthcare sector recorded a revenue growth of 14.8% and an impressive earnings growth of 41.8%.

The Hotels sector closed the year with revenues of Rs. 1.2 b and a profit after tax of Rs. 94 million to enjoy a tremendous year despite the half-year closure of Hotel Serendib for refurbishment.

The transportation sector of Hemas posted a pre-tax profit of Rs. 270 million in FY 11, up from Rs. 251.4 million in the previous year. This was despite sector revenue being down to Rs. 722 million from Rs. 734 million in FY11. However in the 4Q, revenue was to Rs. 180.7 million from Rs. 176.8 million over the corresponding period of last year, whilst after tax profit swelled to Rs. 82.6 million, from Rs. 27 million in 4Q of FY10.

The Power sector recorded Rs. 4.4 billion revenue and Rs. 203 million earnings. However, earnings were impacted in the Power sector due to extremely low rainfall in the catchment areas of its hydropower plants.

Added to this was the rapid decline of the rupee, which affected most of the sectors.

During the year under review, the Group invested Rs. 1.5 billion in projects that will hold the company in good stead in the years to come.

Through these investments, the Group repositioned and re-branded Hotel Serendib as Avani Resorts, commenced development of its third hospital at Talawatugoda, and commissioned another mini hydro plant in Upper Magalganga.

“In the past, the Group has been actively investing in Hospitals, Hotels and Power, with a long-term focus. Over the past five years, Group investments have exceeded Rs. 5 billion. Together with the learning experience from our first two hospitals coupled with our long-term positive outlook on the industry we embarked on our third hospital in Thalawathugoda in early 2012. Given the improved outlook of the tourism industry in Sri Lanka, the Hotel group has revived its plans to develop its 43 acre property in Tangalle in the coming year,” Hemas Holdings Group CEO Husein Esufally said.