Sri Lanka listed company profits slightly down in March quarter

[First Guy]

June 06, 2014 (LBO) - Aggregate profits of listed Sri Lanka companies were down 2 percent from year earlier to 54.3 billion rupees in the March 2014 quarter though banks and hotels were showed profit gains, an equities research report showed.

CAL Research said in the December quarter aggregate profits rose 5.9 percent.
With 265 companies reporting, aggregate revenues had grown 7 percent to 473 billion rupees in the March 2014 quarter amid weak consumer spending, the report said.

CAL Research said aggregate earnings of the bank, finance and insurance sector grew 8 percent in the March 2014 quarter, compared to a 12 percent fall in profits last year.

Diversified holdings showed a profit gain of 5 percent to 13.7 billion rupees.

Profits of hotel and travels were up 18 percent to 4.5 billion rupees, amid a recovery in tourist arrivals.

Beverage food and tobacco was down 16 percent, chemicals and pharmaceuticals were down 163 percent largely on account of a net loss at CIC Holdings, footwear and textiles down 73 percent.
Though inflation was low in the past 12 months, the currency depreciated sharply in 2012 from 110 to 130 rupees to the US dollars. Credit growth has also been weak.

Though a consumption slowdown from weak credit is temporary, inflation effects of a devaluation permanently kill both real spending power and investible capital, economic analysts say.

Currency depreciation or the lack of sound money is the most powerful tool of impoverishing citizens in the hands of a modern state.

http://www.lankabusinessonline.com/news/sri-lanka-listed-company-profits-slightly-down-in-march-quarter/1068888458

[Deegoda Gamage]

The above report contradict with Central Bank Statistics

If GDP gone up why company profits and consumption coming down

[sereneTop contributor]

BTW Bank and Finance performance is very heartening.