Dankotuwa Group records PBT of Rs. 229 Mn for 3rd quarter
Dankotuwa Porcelain PLC (DPL), recorded impressive results for the third quarter of the financial year 2022/23, according to the latest financial results released to the Colombo Stock Exchange.
The Group continued to pursue its growth strategy, in challenging times, and this perseverance enabled the Group to post impressive third quarter (Q3) results.
For the quarter ended December 31, 2022, Dankotuwa Porcelain PLC as a Group (including its subsidiary Royal Fernwood Porcelain Limited – RFPL) recorded a revenue of Rs 1.62 Bn, which was a 47% growth compared to the third quarter of 2021/22.
Furthermore, the Group achieved an overall Gross Profit (GP) of Rs 503 Mn, a 45% growth compared to the Rs. 347 Mn achieved in the corresponding quarter of the previous financial year.
The Group recorded a PBT of Rs 229 Mn for the third quarter and Rs 864 Mn for the 9 months ended December 31,2022 (YTD Q3).
This achievement of the group is attributed to the increase in National Sales which recorded an 87% increase for YTD of 2022/23 compared to the corresponding period of last year, along with International Sales recording a49% increase for the same period.
The subsidiary (Royal Fernwood Porcelain Limited) has shown a laudable turnaround – it recorded revenue of Rs 1.89 Bn, which was a 105% growth compared to the YTD Q3 of 2021/22. Furthermore, RFPL achieved a GP of Rs 610 Mn YTDQ3 of 2022/23, which when compared to that of 2021/22 demonstrated a tremendous growth. As far as PBT was concerned, Royal Fernwood Limited recorded LKR 226 Mn YTDQ3 compared to the Loss before tax of Rs 87 Mn recorded in YTD Q3 of 2021/22.
Dankotuwa Porcelain PLC, as a company, achieved an increase of 119% to record a PBT of Rs 638 MnYTDQ3 of 2022/23.
This was achieved with a 42% increase in sales and a 69% increase of GP of YTD Q3 2022/23 compared to corresponding period of last year 2021/22.
The impact of the change in the rate of income tax to the Group for the quarter ended December 31, 2022 has reduced by Rs 43 Mn due to the differed tax asset being recorded in subsidiary (Royal Fernwood Porcelain Limited), and there is no income tax impact to subsidiary as it carries brought forward tax losses.
Therefore, the net negative impact to the Group was recorded as Rs 44 Mn. Accordingly, the Group recorded a PAT of Rs 151 Mn for the 3rd quarter and Rs 674 Mn for the 9 months ended December 31, 2022. Chief Executive Officer of Dankotuwa Porcelain Channa Gunawardana and its subsidiary stated that “Whilst we achieved our best performance in 2021/22, our success in 2022/2023 is a true indication of our business acumen and well thought out strategies.”