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 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.
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 nine-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 a 49% increase for the same period.
The subsidiary (Royal Fernwood Porcelain Limited) has shown a laudable turnaround - it recorded a revenue of Rs. 1.89 bn, which was a 105% growth compared to the YTD Q3 of 2021/22. RFPL achieved a GP of Rs. 610 mn YTD Q3 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 Rs. 226 mn YTDQ3 compared to the Loss before tax of Rs. 87 mn recorded in YTD Q3 of 2021/22.
Dankotuwa Porcelain PLC, achieved an increase of 119% to record a PBT of Rs. 638 mn YTD Q3 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 2021/22.
The company, had a negative impact of Rs. 87 mn for the quarter ended December 31, 2022, due to the change of income / capital gains tax rate to 30% from October 1, 2022. This negative impact consisted of Rs. 33 mn from Income tax and Rs. 54 mn from differed tax.
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 Group was recorded as Rs. 44 mn. The Group recorded a PAT of Rs. 151 mn for the third quarter and Rs. 674 mn for the nine months ended December 31, 2022.
Chief Executive Officer of Dankotuwa Porcelain and its subsidiary, Channa Gunawardana said, “While we achieved our best performance in2021/22, our success in 2022/2023 is a true indication of our business acumen and well thought out strategies. It is a delight to see that we have continued to sustain our performance in 2022/23.
“As Sri Lanka steers through economic revival, we are committed to contribute to the much-needed economic growth by striving to achieve even better success through our exports. We continue to place our trust in our loyal customers in Sri Lanka, who have been instrumental in, us achieving the results indicated in our reports,” he said.
Gunawardana appreciated the invaluable contribution from all employees of DPL and RFPL who made this exceptional performance possible.