Group profitability, however, came under considerable pressure due to the high cost of working capital financing, and increased revenue-based taxes, as the Group did not pass on rising indirect taxes to consumers.
Cumulative Group Revenue and PBT (Profit Before Tax) stood at LKR 11.37 billion and LKR 1.3 billion, respectively, both reporting an increase of 48% and 203%, respectively, over same period in the year prior.
The performances were positively impacted by new businesses, particularly in the industrial sector, whilst exchange losses and high finance costs negatively impacted profitability.
Commenting on the Group’s 1st Half Performance, a company spokesperson said,
“We are encouraged by the progress we have made in the first half of the financial year, with numerous strategies put into execution to achieve working capital efficiencies in our core business segments, whilst harnessing extra returns from investments in new business opportunities.
The present business climate has presented a set of unprecedented challenges to our management teams, and demands innovation, agility and a sense of urgency, to respond and adapt swiftly to a highly dynamic economic environment.
Still, even in this unprecedented business climate, the Group remains determined to fulfil its objective of seeking sustainable and profitable growth, and maintaining acceptable levels of return on capital employed, whilst constantly delivering on our commitments to our valued stakeholders.”
In keeping with its commitment to stakeholders, the Group paid an Interim Dividend of Rs. 1/- per share at the end of September 2022, distributing LKR 253.5 million to shareholders.
The Group also paid out a total dividend of LKR 380.3 million in the previous financial year, in line with the Group’s Dividend Policy.
Discussing future expectations, a company spokesperson added,
“While we observe a contraction in consumer spending due to tighter fiscal and monetary policies, we also observe that the policy framework being adopted is guiding the economy towards a stable new norm, which we will have to operate in.
In these difficult times, we remain confident that the Group will return acceptable results in the current year, and we look forward to continuing to deliver exceptional value to all stakeholders.”