Royal Ceramics goes for Rs. 1 b upgrade

Tuesday, 17 January 2017 00:49 - - {{hitsCtrl.values.hits}}

Royal Ceramics Lanka (RCL) has announced that its Board of Directors has decided to proceed with the replacement of one of the existing kilns of its Eheliyagoda factory at an estimated cost of Rs. 978 million.

This exercise will be completed by June 2017.

“Upon being commissioned it will result in an increased capacity and capability of producing large format cost-effective tiles,” RCL said.

In FY16, RCL saw its net turnover rise by 11% to Rs. 25 billion and pre-tax profit swell by 57% to Rs. 5.7 billion. Its after-tax profit grew by 33% to Rs. 4.09 billion. This was mainly dominated by the tile sector which contributed 63% of the group’s profit. The Finance and Aluminum sectors showed tremendous growth during the year by as much as 70.3% and 59% respectively, compared to the preceding year.

However, the Plantation and Paint sectors recorded losses of Rs. 86 million and Rs. 63.5 million.

In the first half of the 2016/17 financial year, RCL’s revenue rose by 22% to Rs. 1.7 billion and at the Group level it grew by 6% to Rs. 11.6 billion.

Pre-tax profit improved by 21% to Rs. 604 million for RCL and by 15% to Rs. 1.75 billion at the Group level.

The bottom line for six months for RCL was up 10% to Rs. 1.36 billion.