Falling Sri Lankan commodities benefit from currency gains
ECONOMYNEXT – Profits of Dipped Products Plc in Sri Lanka, which has interests in rubber products and plantations, rose 43% in the March 2022 quarter from a year ago to 2.3 billion rupees as the currency collapse led to foreign exchange gains, according to provisional accounts.
The Hayleys Group company, which has factories in Sri Lanka and Thailand, reported earnings of 3.95 rupees per share. In the year to March, the group reported a profit of 8.99 rupees, up 4.2% from a year ago, on total profits of 6.4 billion rupees.
Interim reports showed Dipped Products (DPL) Group’s pre-tax profit for the March quarter improved to 3.3 billion rupees from 2.3 billion in the same period a year earlier. .
Gross profit fell 35% to 2.3 billion rupees, as revenue fell 9% to 12.5 billion rupees in the quarter and cost of sales rose 1% to 10, 1 billion rupees.
The government in its budget for 2022 has proposed a one-time tax, called surtax, at the rate of 25% to be imposed on companies that have earned taxable income above Rs 2 billion for the tax year 2020/2021. .
The firm indicated that the estimated amount of the tax is 321.6 million rupees.
“The tax is imposed by the Supplementary Tax Act No. 14 of 2022, which was passed by the Parliament of Sri Lanka on April 7, 2022. As the law imposing the supplementary tax was enacted after the end of the reference, the financial statements for the year ended March 31, 2022 do not reflect the tax payable that would result therefrom…”, declared the firm in its interim report.
(Colombo/ June 4, 2022)