Alumex shines in FY 14 with growth in top line and profits

Monday, 12 May 2014 00:09 -     - {{hitsCtrl.values.hits}}

The Alumex Group performed exceptionally well in the financial year ended 31 March 2014, with revenue growing 13% to reach Rs. 2.8 billion. Profit before tax of the group was Rs. 464 million, recording an increase of 23%. Profit after tax was reported as Rs. 379 million compared with Rs. 307 million in the previous year. The year 2013 saw Sri Lanka’s GDP grow by 7.3%, with the construction sector being a major contributor. The construction sector grew at 14.4%, double the pace of aggregate GDP growth, driven by a continuing trend of investment in infrastructure, hotels and the residential sector. Macroeconomic conditions were also conducive as interest rates declined, reducing cost of capital, whilst inflation was anchored at mid-single digit levels. Modest global economic growth ensured moderate commodity prices including that of aluminium, the key raw material for Alumex. Encouraged by the growth in the construction sector, Alumex has invested further in its distribution network and expanded into new areas across Sri Lanka. The Group also made progress in its export ventures as revenue was increased in the Maldives and India. Despite the strong growth in construction, the industry is not without challenges. The volatility in the liquidity position in the construction sector restricted sales in the latter half of the year but a change in strategy mitigated its effects by the year end. There is also an ever present risk of low quality imports entering the market and it is important that the government is vigilant of this and takes steps to ensure that domestic industry does not suffer as a result. Given the encouraging performance of Alumex since Hayleys acquired the Group in 2010, the company was listed in the Colombo Stock Exchange in March 2014 with an IPO of Rs. 838 million. The Board of Directors of Alumex comprises Mohan Pandithage (Chairman), Rohan Peris (Managing Director), S.C. Ganegoda, D.W.P.N. Dediwela, A.A. Akbarally, R.P. Pathirana, H.H. Abdulhusein, Dr. H. Cabral and S. Munaweera.