LMD 100 SECOND BOARD | 2019/20
STRESSED BOTTOM LINES
The secondary listing of Sri Lanka’s listed entities illustrates the challenges faced by corporate establishments across the island
On 30 November 2020, the Colombo Stock Exchange (CSE) featured 285 companies representing 20 business sectors with a market capitalisation of over Rs. 2.7 trillion. Of these corporates, the first 100 (by virtue of their reported revenue for financial year 2019/20) have been ranked in this special annual edition of the LMD 100.
The LMD 100 Second Board comprises the 50 entities that didn’t make the LMD 100 (or First Board) cut in financial year 2019/20.
With an annual revenue of Rs. 5.2 billion in financial year 2019/20, First Capital Holdings is the first ranked entity on the LMD 100 Second Board, having advanced by 10 spots from the previous year.
Its top line recorded an increase of 25 percent year on year while profit after tax (PAT) recorded a healthy 1.1 billion rupees in the period under review (compared to Rs. 8 million in 2018/19).
Richard Pieris Exports sits in second place on the LMD 100 Second Board rankings, having featured on the first board in the prior year. Its revenue of Rs. 5.2 billion for financial year 2019/20 reflects an upside of one percent compared to the previous 12 months. Richard Pieris Exports was in the black to the tune of one billion rupees, which follows a PAT of Rs. 980 million in financial year 2018/19.
Whereas it too was part of the first board rankings in the preceding year, Regnis (Lanka) occupies the number three position on the LMD 100 Second Board in the latest edition of listed company rankings. This is by virtue of its turnover declining by 26 percent to Rs. 5 billion in the 2019/20 financial year. Nevertheless, its post-tax profit grew by 19 percent year on year to 108 million rupees.
Printcare climbed down the LMD 100 Second Board to fourth place on the ladder with a turnover of nearly Rs. 5 billion (up 2% from the prior year) in the period under consideration. And its bottom line failed to impress – with a loss of 64 million rupees for the year ended 31 March 2020.
The top five on the LMD 100 Second Board includes Malwatte Valley Plantations, which recorded a two percent increment in revenue compared to the preceding year to Rs. 4.9 billion. However, it recorded an after tax loss of 228 million rupees.
Number six ranked Alumex reported a turnover of Rs. 4.7 billion (6% annual decline) on the LMD 100 Second Board. In financial year 2019/20, the company recorded a PAT of 31 million rupees compared to Rs. 126 million in the year prior.
Swisstek (Ceylon) features in seventh place on the LMD 100 Second Board’s latest rankings. The company enjoyed an eight percent uptick in revenue (to Rs. 4.6 billion) in 2019/20 in addition to posting a post-tax profit of 168 million rupees.
And Singer Finance (Lanka) also surpassed Rs. 4.5 billion in revenue and has moved six spots up the ladder to No. 8 on the LMD 100 Second Board. On the other hand, its bottom line of 389 million rupees in 2019/20 is lower than the PAT of Rs. 542 million recorded in the previous financial year.
Ninth place in the secondary listing of Sri Lanka’s listed entities goes to LOLC Development Finance whose income was six percent higher (at Rs. 4.5 billion) in financial year 2019/20 – it retains its position from the prior year’s rankings. The company recorded a PAT to the tune of 109 million rupees versus a loss of Rs. 154 million in financial year 2018/19.
Bogawantalawa Tea Estates rounds off the top 10 of the LMD 100 Second Board, having fallen three notches in this year’s rankings. Its income of Rs. 4.4 billion reflects a downside of two percent year on year while the company witnessed a mounting loss in financial year 2019/20.
Total revenue of the latest LMD 100 Second Board amounts to Rs. 173 billion or thereabouts, which represents a six percent decline compared to the preceding year. And cumulative profits contracted by 91 percent year on year to 691 million rupees. As for total assets, the aggregate base expanded by five percent (to Rs. 403 billion) whereas shareholders’ funds (Rs. 119 billion) grew by two percent in the period under review.
There are three new entrants to the LMD 100 Second Board – viz. Convenience Foods (Lanka), Swadeshi Industrial Works and Eastern Merchants.
At the same time, six entities have been displaced from the LMD 100 Second Board – viz. Dunamis Capital, The Kingsbury, AgStar, Nation Lanka Finance, Bimputh Finance and Tea Smallholder Factories.
The majority of corporates (23) that feature on the LMD 100 Second Board are from the food, beverage and tobacco sector. Diversified financials account for nine entities. There are also three entries stemming from consumer durables and apparel, materials and retailing sector respectively, as well as two each representing consumer services, and household and personal products.
Meanwhile, capital goods, commercial and professional services, healthcare equipment and services, insurance, and pharmaceuticals, biotechnology and life sciences sectors have a single entrant in the LMD 100 Second Board for financial year 2019/20.
