Sri Lanka’s Access Engineering posts Rs. 2.3 billion profit at end FY21
Sri Lanka’s Access Engineering PLC (AEL) has reportedly concluded FY21 on a high, posting an after-tax profit of Rs. 2.3 billion, which is an increase by 21% from the previous year.
Issuing a statement, AEL has stated that the company and the Group had recorded an after-tax profit of Rs. 1,053 million and Rs. 911 million respectively for the fourth quarter, indicating a faster and healthy recovery of operations, despite the lingering impacts of the pandemic.
According to reports, the Group’s after-tax profits for the 12 months has stood at Rs. 2.18 billion, which is similar to group performance. The company performance for the 12 months has also been impressive with an after-tax profit of Rs. 2.3 billion corresponding to a year-on-year (YOY) growth of 20.9%.
Gross profit for the quarter was recorded at Rs. 1.38 billion and Rs. 1.06 billion at Group and Company level respectively, with corresponding margins of 18.2% and 14.6%. For the cumulative period gross margin was recorded at 17.6% and 13.3% at Group and Company level respectively, local media reports stated.
AEL has stated that despite some of the sectors recording revenue decreases during the quarter, the increase in sales of construction-related materials accounted for the good performance of the company. Core construction activities, property sector and the automobile sector had recorded YOY decreases in revenue during the quarter amounting to approximately 0.2%, 18.8% and 24.7% respectively, reports have further noted.
Nevertheless, this decrease has been offset by a substantial growth in the sale of construction related material during the quarter.
Growth in construction-related materials of the company was primarily driven by the ever-increasing demand for asphalt. This demand is primarily driven by the rural road network development plans of the country along with ADB and World Bank-funded road development programme with Access Engineering is Sri Lanka’s largest asphalt producer with a commanding market share and plants located in strategic locations island wide, the Daily FT has reported.
OSL take:
The impressive profits recorded by the Sri Lankan company is indicative of the strength and growth of the country’s private sector. This inturn is testament to the economic growth in the country amidst the Covid 19 pandemic. Sri Lanka’s economy has shown great resilience to external and internal challenges through the years and is once again on the path to recovery after facing the impact of the global Covid 19 pandemic. All key economic sectors in the country are showing gradual growth while being engaged in an aggressive development programme. Sri Lanka is fast becoming a business hub in the South Asian region given it’s geographical positioning in the Indian ocean and the many trade agreements as well as trade concessions enjoyed by the country. Foreign businesses/investors could explore business/investment opportunities in Sri Lanka while also looking at forming joint ventures/partnerships with local businesses.
| Article Code : | VBS/AT/20210611/Z_6 |