Access Engineering records Rs. 550 mn profits in 1Q22
Group after tax profits for the 3 months stood at Rs. 517 million, against a corresponding after tax profit of Rs. 43 million in 20/21.
The significant margin improvement was owing to all key sectors recording revenue increases during the quarter, except automobile sector due to the Government imposed import restrictions on vehicles. Core construction activities and property sector recorded YoY increases in revenue during the quarter amounting to 56.1% and 18.9% respectively.
The performance of construction material segment was impressive too with a top line of Rs. 2.56 Bn., primarily on the sale of asphalt and ready mix concrete. There is a growing demand for construction material driven by the rural road network development project along with ADB and World Bank funded road development programs. Expansion of the expressway network and the elevated road network is expected to create more demand for construction material in future. Today Access Engineering is one of Sri Lanka’s largest asphalt and concrete producers with a notable market share.
Company’s core construction activities amounting to Rs. 3,284Mn contributed to 46.5% of the group’s consolidated revenue with construction related material contributing to 36.3% (Rs. 2,566Mn), property 2.6% (Rs. 182Mn) and automobile 14.6% (Rs. 1,028)respectively during the quarter.
Main construction projects that contributed to the company revenue during the quarter included the Bloemendhal Housing Project, Orugodawatta Housing project, Stadiumgama Housing Project, Elliot Place Housing Project, i – Roads project, Anuradhapura Water Supply Project, Nittambuwa Pasyala Road Project, piling and earth works for the New Terminal Building and Viaduct at Bandaranaike International Airport and the recently commenced multi-storied public car park development at Union Place. The Company is also engaged in the construction of a T – Mall flyover and several foot bridges in Kenya as a part of its overseas work.
Performance of the automobile sector was hampered by the import restrictions that continued since last financial year. This had a significant impact on the sale of new vehicles which is the core business of the said sector. Nevertheless, the new ISUZU Marine sector,workshop operations and sale of spare parts showed improvement.
Company’s twoongoing real estate projects performed well during the quarter with satisfactory sales. While Marina Square is in the process of completion of sub – structure work of all towers up to the podium levels, Capital Heights Rajagiriya is expected to be handed over to the owners by the end of 2021/22 financial year. Access Tower I & II, which are in the business of office and commercial space leasing, continued to experience good occupancy rates.