Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum 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..

All information contained in this forum is subject to Disclaimer Notice published.

Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post
Market Place

Add an ad

View all ads

Latest topics

» 8 Finance companaies to be closed very soon
by samaritan Today at 6:26 pm

» Copreus (Pvt) Ltd - Need some Information
by jake94 Today at 5:15 pm

» Sri Lanka’s largest pension fund EPF return to Colombo Stocks
by samaritan Today at 4:04 pm

» Why AAIC Should trade above RS.50/-
by Teller Today at 10:36 am

» Head and Shoulders Top
by freeforexsignals2020 Today at 8:49 am

» UNION BANK (UBC) to be takeover by Union bank of india
by aklt Today at 1:20 am

by wisdom79 Yesterday at 7:42 pm

» Pakistan’s trade with Sri Lanka comes to a halt
by soileconomy Yesterday at 7:35 pm

» Daily Stock Market Update
by Teller Yesterday at 7:18 pm

» Market will test 4700
by karuna2 Yesterday at 12:25 pm

» Keep eye on Politics
by samaritan Yesterday at 11:49 am

» CSE from Dawn of Peace to Rebirth of Terrorism
by Yahapalanaya Yesterday at 9:59 am

» EAST Steady at 18
by mark Yesterday at 9:25 am

» New Support Level 5300
by hammurabi Thu May 23, 2019 8:47 pm

» LIOC upward curve
by karuna2 Thu May 23, 2019 5:57 pm

» SEC yet to publish its 2017 Annual Report
by Teller Thu May 23, 2019 5:10 pm

» HNB Assurance March net down 83-pct
by Teller Thu May 23, 2019 1:18 pm

» PABC net down 13-pct in March; loans contract
by Teller Thu May 23, 2019 1:15 pm

» Indian stocks jumped to record highs
by Teller Thu May 23, 2019 1:13 pm

» modi wins-India to no1 in the world
by Teller Thu May 23, 2019 1:07 pm

» Hayleys revenue up 34% YoY to Rs 219 bn in FY 18/19
by Teller Thu May 23, 2019 1:02 pm

» undervalued stock
by Teller Thu May 23, 2019 1:00 pm

» CIND , 10% guaranteed return
by Teller Thu May 23, 2019 12:57 pm

by Agape Thu May 23, 2019 8:52 am

» Reputation???
by Uaecoindubai Wed May 22, 2019 7:12 pm

by lokka1 Wed May 22, 2019 12:55 pm

» Sri Lanka’s Top 10 Imports
by Gajaya Wed May 22, 2019 11:16 am

» Top 10 Small Scale Business ideas & Opportunities in Sri Lanka 2019
by Gajaya Wed May 22, 2019 11:15 am

» when bank lending rates put down ?
by nuwanmja Wed May 22, 2019 11:01 am

» Sri Lanka's EPF enters stock market with blood in the streets
by God Father Tue May 21, 2019 8:21 pm

» Sri Lanka caught in the big power conflicts
by God Father Tue May 21, 2019 8:16 pm

» High Profile Selling at EAST
by Uaecoindubai Tue May 21, 2019 4:43 pm

» A Trader’s Guide to FIX Engine
by Brenda John Tue May 21, 2019 11:24 am

» Reasons for market to crash
by Uaecoindubai Tue May 21, 2019 10:08 am

» ගෙවුම් ශේෂය, වාහන බලපත් හා ඩොලරයේ මිල
by ChooBoy Mon May 20, 2019 5:59 pm

» Terrorism and its Impact on the Sri Lankan Economy
by ChooBoy Mon May 20, 2019 5:41 pm

» Sri Lanka Equity Market Place
by Sstar Mon May 20, 2019 4:36 pm

» Sri Lanka Equity Market Talk
by Sstar Mon May 20, 2019 12:23 pm

» Sri Lanka Equity Market Help
by Sstar Mon May 20, 2019 12:18 pm

by stockback Sun May 19, 2019 5:20 pm

» Look PAP Amazing company
by Uaecoindubai Sun May 19, 2019 5:13 pm

» Sri Lanka Equity Market Place
by Uaecoindubai Sun May 19, 2019 5:13 pm

by Ahcha Sun May 19, 2019 4:40 pm

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market & Forum Help » Stock Market News » Central Industries expanding at new site near Yakkala

Central Industries expanding at new site near Yakkala

Go down  Message [Page 1 of 1]


Director - Equity Analytics
Director - Equity Analytics
Profits and turnover up despite slowing economy

Central Industries PLC, a Central Finance subsidiary manufacturing and distributing PVC water pipes and tanks, electrical switches and other construction material, is making substantial investments expanding and upgrading its production and warehousing facilities, the company’s executive chairman, Mr. S.V. Wanigasekera, has said in its annual report.

The company has purchased a property close to Yakkala for Rs. 32 million and intends to carry out all future expansion of its manufacturing and storage capacity at this site, he said.

Additionally the company had invested Rs. 4 million expanding buildings at its Kerawalapitiya manufacturing facility with Rs. 13 million invested on plant and equipment to manufacture new products with significant design improvement; a further Rs. 18 million to enhance capacity of existing production lines; and Rs. 22 million on a new generator and power supply augmentation after more than 15 years.

Wanigasekera noted that the company had seen a significant revenue increase of almost 25% to Rs.1.6 billion in the year ended March 31, 2012 despite the slowing of economic activity in the country.

He said that their Krypton range of domestic electrical switches is now becoming popular mainly in rural areas.

The group posted a pre-tax profit of Rs.149.8 million, up from Rs.121.8 million the previous year and an after-tax profit of Rs.105.9 million against Rs.74 million the previous year thanks partly to what the chairman called "the welcome reduction of taxation of profits to 28% compared to 35% last year."

The directors have recommended a first and final dividend of Rs.3 per share for the year against Rs.2.50 paid the previous year.

"All of these (new) investments were carried out of the company’s own internally generated funds and very short term bank borrowings thus avoiding high financing costs," Wanigasekera said.

The development of a second production and warehouse facility at Yakkala would be undertaken in two stages – initially transferring some product and storage facilities utilizing a large extent of space from Kerawalapitiya to the new location.

"New machinery which will provide additional production capacity will also be installed during this first stage, which will be undertaken during the current financial year and is estimated to cost approximately Rs.65 million," Wanigasekera said.

"The second stage to further enhance production capacity for PVC products is planned to be implemented in the next financial year."

He said that Central Industries continued to identify opportunities in the market and introduce quality products. They had recently pioneered the local manufacture of PVC ball valves which are fully manufactured in-house.

"In response to customer feedback we have also introduced a new range of electrical switches and sockets incorporating improved design features which will reduce production costs while improving product performance," he said.

Wanigasekera said that the recent volatility of the Sri Lanka rupee and the uncertainty in the exchange rate will place pressure on margins as they are almost fully dependent on imported raw material inputs.

Although they will be comparatively less affected by the rise in interest rates when compared to others in the industry, he warned that high interest can dampen demand in the construction industry with medium and small investors deferring new investments.

Central Industries has a stated capital of Rs.121.3 million, a revaluation reserve of Rs.159.4 million, a capital redemption reserve of Rs.35.8 million, a general reserve of Rs.65 million and retained earnings of Rs.494.7 million in its books.

Total assets ran at Rs.1.07 billion and total liabilities at Rs.190.3 million.

Net assets per share had grown to Rs.88.65 from Rs.80.43 the previous year and the company’s share traded at a high of Rs.116 and a low of Rs.60 during the year under review.

Central Finance with 44.06% and CF Insurance Brokers with 5.71% are the controlling shareholders followed by Sierra Cables with 15.21%.

The directors of the company are: Messrs. S.V. Wanigasekera (Executive Chairman), E.H. Wijenaike, A.N.P. Wickramasuriya (CEO), G.S.N. Peiris, C.S.W. De Costa, R.E. Rambukwelle, A.K. Gunaratne, N.J. Abeysekere and L.R. De Lanerolle (w.e.f. 20.06.2011).

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum