would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc.. 
Home
Uploaded in Research section
http://research.srilankaequity.com/t291-lanka-securities-quarterly-earning-review
Profit Progress - Sri Lanka corporate earnings growth seen losing steam
Mar 24, 2012 (LBO) - Double-digit earnings growth among listed companies in a post-war economic boom in Sri Lanka appears to have ended according to the latest quarterly figures, a report by a stock brokerage said.
Earnings growth was led by the financial services sector with the health care sector also posting good growth, Lanka Securities said in its quarterly earnings review for the December 2011 quarter.
"Having recorded double digit earnings growth for back-to-back quarters, listed companies in the Colombo Stock Exchange were unable to continue the same mind-blowing pace in earnings growth for 4QFY2011," it said.
"Earnings for the quarter were 43.7 billion rupees (including non-recurring items) with an underwhelming growth of 6.5 percent year-on-year."
But annual earnings in the 2011 calendar year increased sharply by 21.0 percent from the year before "owing to the impeccable profit growth recorded by the preceding quarters."
In addition, on a quarterly basis earnings were up by 13.1 percent, quarter-onquarter.
The brokerage said the earnings growth meant a compounded annual growth rate of 19.5 percent for the post-war period starting from the second quarter of the 2009 financial year.
Sri Lanka's 30-year ethnic war ended in May 2009, sparking an economic boom that included a sharp revival in tourism as well as consumer spending.
Historically, Lanka Securities said, the fourth quarter of the calendar year is the strongest in terms of earnings especially due to companies in the financial services booking high profits during this quarter.
The report covered 261 companies out of which 36 companies did not release financial data for the fourth quarter of 2011 as they are listed under the 'Diri Savi' second board in which companies publish earnings only on a six months basis.
Most of the companies that came to the market through initial public offers and listing by introduction during the post-war period listed on the Diri Savi Board.
"Despite consumer goods and utilities sectors ending up in the negative growth territory all other sectors recorded vigorous bottom line growth," the report said.
"Financial services sector recorded an imposing earnings growth (of 24.4 percent from a year ago) being the highest contributor (at 37.0 percent) to the sector earnings," Lanka Securities said.
"Industrials sector barely touched the green zone with a marginal 0.9 percent year-on-year improvement in profits.
"Diversified holdings subsector failed to generate a significant growth (with only 3.8 percent year-on-year growth) in earnings while industrial goods and services subsector pulled down sector earnings."
Industrials contributed 26.0 percent of the sector earnings regardless of having a slightly lower contribution of 23.0 percent to market capitalization.
The consumer goods sector which encompasses 33.0 percent of the market capitalization delivered only 25.0 percent of the sector earnings while profits shrank 8.7 percent from the year before.
http://lbo.lk/fullstory.php?nid=1372057966
http://research.srilankaequity.com/t291-lanka-securities-quarterly-earning-review
Profit Progress - Sri Lanka corporate earnings growth seen losing steam
Mar 24, 2012 (LBO) - Double-digit earnings growth among listed companies in a post-war economic boom in Sri Lanka appears to have ended according to the latest quarterly figures, a report by a stock brokerage said.
Earnings growth was led by the financial services sector with the health care sector also posting good growth, Lanka Securities said in its quarterly earnings review for the December 2011 quarter.
"Having recorded double digit earnings growth for back-to-back quarters, listed companies in the Colombo Stock Exchange were unable to continue the same mind-blowing pace in earnings growth for 4QFY2011," it said.
"Earnings for the quarter were 43.7 billion rupees (including non-recurring items) with an underwhelming growth of 6.5 percent year-on-year."
But annual earnings in the 2011 calendar year increased sharply by 21.0 percent from the year before "owing to the impeccable profit growth recorded by the preceding quarters."
In addition, on a quarterly basis earnings were up by 13.1 percent, quarter-onquarter.
The brokerage said the earnings growth meant a compounded annual growth rate of 19.5 percent for the post-war period starting from the second quarter of the 2009 financial year.
Sri Lanka's 30-year ethnic war ended in May 2009, sparking an economic boom that included a sharp revival in tourism as well as consumer spending.
Historically, Lanka Securities said, the fourth quarter of the calendar year is the strongest in terms of earnings especially due to companies in the financial services booking high profits during this quarter.
The report covered 261 companies out of which 36 companies did not release financial data for the fourth quarter of 2011 as they are listed under the 'Diri Savi' second board in which companies publish earnings only on a six months basis.
Most of the companies that came to the market through initial public offers and listing by introduction during the post-war period listed on the Diri Savi Board.
"Despite consumer goods and utilities sectors ending up in the negative growth territory all other sectors recorded vigorous bottom line growth," the report said.
"Financial services sector recorded an imposing earnings growth (of 24.4 percent from a year ago) being the highest contributor (at 37.0 percent) to the sector earnings," Lanka Securities said.
"Industrials sector barely touched the green zone with a marginal 0.9 percent year-on-year improvement in profits.
"Diversified holdings subsector failed to generate a significant growth (with only 3.8 percent year-on-year growth) in earnings while industrial goods and services subsector pulled down sector earnings."
Industrials contributed 26.0 percent of the sector earnings regardless of having a slightly lower contribution of 23.0 percent to market capitalization.
The consumer goods sector which encompasses 33.0 percent of the market capitalization delivered only 25.0 percent of the sector earnings while profits shrank 8.7 percent from the year before.
http://lbo.lk/fullstory.php?nid=1372057966
