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[August 2008]
Royal Ceramics Reports Strong Second Quarter
LBO reports that at Sri Lankan tile manufacturer Royal Ceramics, the June quarter net profit rose by 44% to 77 million rupees as demand continued to remain healthy despite a slowdown in the up-market construction sector.The group's gross revenue went up by 16% to 891 million rupees, according to interim results released by the company. The company said it disposed of its stake in Lanka Ceramics on 15 July 2008.
Royal Ceramics operates two tile plants in Eheliyagoda and Horana, south of Colombo. It has also invested in a new porcelain tile factory in Homagama to meet rising demand, as well as a sanitaryware plant that has started trial production.
Royal Ceramics has approximately 40% share of the domestic market for tiles and operates an islandwide network of 35 showrooms. Most of the company’s tiles are sold in the local market where demand is reported as having soared owing to the construction boom in recent years. It also exports a small amount of tiles.
In April this year, Royal Ceramics said it planned to get into the roofing tile business as part of its diversification strategy. It has set up a subsidiary called Rocell Roofing to make roofing material at its site in Homagama, with a reported investment of some 1.5 billion rupees.
ENDS