Bogala Graphite records Rs 33.2 m PAT
Bogala Graphite Lanka has recorded a Profit After Tax of Rs. 33. 2
million, during the 2011 financial year while its revenues have seen a
year on year growth of 3% to run up to Rs.399 million.
Bogala Graphite Lanka said, the rupee depreciation against the Euro
has impacted the company's cash outflows during the 2011 financial year,
as the firm had to repay the debt in Euros to its parent firm.
However, Chairman Vijaya Malalasekara said the company has been able
to re-schedule the repayment of their debt to be paid over a longer
period of time, after discussing with the parent firm. "This will ease
the pressure on our cash flows in the future" he said. However, the
public quoted company's gross profit has declined from Rs.131 million to
Rs. 129 million during 2011, with administrative expenses increasing due
to wage increases. In the Chairman's review of 2011 annual report,
Malalasekera says the lubricant plant of the firm, which was installed
during the year under review, is beginning to pay reasonable returns.
"Our sales of lubricants to the South Asian market have increased.
This appears to be an area of growth into the future," he said. He said
pricing of the firm's products would be a key determinant to
profitability, in both graphite and lubricants. According to the
Chairman's review, Boghala Graphite is currently in the process of
negotiating prices with its key buyers.