Aitken Spence PLC posted Rs. 540 million as profits attributable to equity holders of the company in the second quarter, an increase of 50% year-on-year. Pre-tax profits rose by 26% to Rs. 973 million while revenue rose by 70% to Rs. 9.8 billion, in the second quarter from last year. Earning per share for the quarter was Rs. 1.33, an increase of 50% over the corresponding period.
Increase in revenue during the quarter from the tourism sector was mainly driven by new additions, Al Falaj hotel (Oman), Turyaa Chennai (India) and the new wing of Turyaa Kalutara.
Resumption of operations at the Company’s thermal power plant contributed to the increase in revenue from the Strategic Investments sector, while the new segments in the freight and port management activities contributed to the increase in the Maritime and Logistics sector revenue.
The diversified Group’s six months results reflected profits attributable to equity holders of the company at Rs. 789 mn and pre-tax profits at 1.45 bn. Six-month revenue increased by 50 % to Rs. 17.38 bn, while earnings per share for the same period stood at Rs. 1.94. Operations of the Group’s thermal power plant recommenced in April this year following a lapse of one year, now contributing to a more stable national power generation effort.
The Group has made substantial investments over the years to establish a portfolio of thermal, wind, hydro and especially renewable energy production, and expects growth in this area of engagement both in the local and foreign markets. The tourism sector whose lion share is represented by the Group’s chain of resorts spread across four countries faced a challenging quarter. The interest and start-up costs of new hotel projects in Sri Lanka and overseas affected the bottom line of the sector.The closure of a multitude of rooms in a few resorts in the Maldives for refurbishment coupled with lower demand from key source markets negatively affected the returns from the Maldives leisure segment. However, the Company is confident that the Maldives tourism sector would pick up in the short to medium term.