Sri Lanka’s Access Engineering records increase in 1Q profit by 162% to Rs. 550 million
Sri Lanka’s Access Engineering PLC releasing its interim financial statements for the three months ended 30 June has stated the Company has recorded an after-tax profit of Rs. 550 million at the Company level for the quarter with a corresponding year-on-year (YOY) increase of 162%.
Access Engineering has noted that it as an indication of the bouncing back of its operations despite the challenges posed by the current pandemic.
The Group’safter-tax profits for the three months stood at Rs. 517 million against a corresponding after-tax profit of Rs. 43 million in 20/21.
According to local media reports, the significant margin improvement was due to all key sectors recording revenue increases during the quarter.
Core construction activities and property sector has recorded YOY increases in revenue during the quarter amounting to 56.1% and 18.9% respectively.
The performance of the construction material segment has also recorded an impressive growth with a topline of Rs. 2.56 billion, primarily on the sale of asphalt and ready-mix concrete.
Access’s core construction activities amounting to Rs. 3,284 million has contributed to 46.5% of the Group’s consolidated revenue with construction-related material contributing 36.3% (Rs. 2,566 million), property 2.6% (Rs. 182 million) and automobile 14.6% (Rs. 1,028 million) respectively during the quarter, local media reports added.
The increase in profits of Sri Lanka’s Access Engineering is indicative of the strength and growth of the country’s private sector as well as their resilience despite facing challenges posed by the global Covid 19 pandemic. The positive growth momentum recorded by many economic sectors in Sri Lanka is a further indication of the country’s economic strength despite setbacks due to the pandemic. Sri Lanka’s banking sector had also show positive growth. Given the country’s geographical positioning in the Indian ocean, the many trade agreements, concessions enjoyed by the country and the improving ease of doing business environment in the country, Sri Lanka poses attractive business/investment opportunities. Foreign businesses/investors could also look at forming partnerships and joint ventures with local businesses.
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