Bogala Graphite Lanka says, the rupee depreciation against the Euro has impacted the company’s cash outflows during the year 2011 financial year, as the firm had to repay the debt in Euros to its parent firm.
However, Chairman of the firm Vijaya Malalasekara says the company has been able to re-schedule the repayment of their debt to be paid over a longer period of time, after discussing with the parent firm.
“This will ease the pressure on our cash flows into future” added Malalasekera.
The company during the year 2011 financial year has recorded a Profit After Tax of Rs. 33. 2 million, while the Revenues have seen a year on year growth of 3% to run up to Rs. 399 million.
However, the public quoted company’s Gross Profit has declined from Rs. 131 million to Rs. 129 million during 2011, with administrative expenses increasing due to wage increases.
In the Chairman’s review of the year 2011 annual report, Malalasekera says the lubricant plant of the firm, which was installed during the year under review, is beginning to pay reasonable returns.
“Our sales of lubricants to the South Asian market have increased. This appears to be an area of growth into the future” further added the Chairman.
He also mentions that the pricing of the firm’s products is going to a key determinant to profitability, in both the graphite and lubricants.
According to the Chairman’s review, Boghala Graphite is currently in the process of negotiating prices with its key buyers.
Bogala Graphite is a firm engaged in Graphite mining, processing and exporting and is a Ms Graphit Kropfmühl AG group of companies in Germany.
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