Leather Products makes come back with Rs 62.6 m profit

Harshini PERERA

Ceylon Leather Products has recorded a substantial turnover of Rs 648.6 million during the financial year 2009/2010 compared with the last year’s turnover Rs 419 million. It is an increase of 55 percent compared with the last year.

The profit before tax has increased by 257 percent from a loss of Rs 39.8 million in the financial year 2008/2009 to a profit of Rs 62.6 million for the financial year 2009/2010.

The profit after tax increased by 249 percent from a loss of Rs 24.1 million in the financial year 2008/2009 to a profit of Rs 35.9 million for the financial year 2009/2010, Ceylon Leather Products the annual report revealed.

Although Ceylon Leather Products suffered a loss of Rs 39.8 million in 2008/2009, it is heartening to note that the company has recorded a profit of Rs 62.6 million before tax in the financial year 2009/2010.

The Directors of the company along with the major shareholders are looking at new opportunities to expand the business by investing in other business enterprises which have potential for growth such as South Asia Textile Industries Lanka with an investment of Rs 550 million and Dankotuwa Porcelain PLC.

The turnover of the tannery during the corresponding period is Rs 167.4 million compared to Rs 158.5 million during the previous financial year. The turnover was Rs 38.4 million compared to Rs 11.6 million during the previous year.

The finance cost for the period under review is Rs 35.4 million compared to Rs 39.9 million during the previous financial year.