Harsha Jayatunga, CEO of Sierra Cables
Sierra Cables PLC, one of the largest cable manufacturers in Sri Lanka with an international presence, recorded in fiscal year 21 the highest turnover on record of Rs. 5.2 billion, up from 7% compared to the previous year.
The group also generated the highest profit after tax (PAT) on record of Rs. 314 million, up 37.4% from FY20.
In a statement, the company said the financial performance underscores the group’s ability to maintain a healthy gross profit margin (GP) of 15.6% and a net profit margin (NP) of 5.7%.
“This is a commendable performance given the pandemic and turbulent environment in which the company has had to operate,” the statement said.
The revision of the long-term national rating of the company to AA- (lka) proved to be an encouraging aspect which gained the confidence of the stakeholders and improved the solvency of the company. The company’s net finance cost decreased 31.2% year-on-year due to prudent financial planning and mitigation strategies adopted by the company throughout the pandemic period.
Harsha Jayatunga, CEO of Sierra Cables PLC, said: “Despite escalating production costs triggered by the gradual rise in global prices for copper, aluminum and other key raw materials, the company has been able to reduce its production costs. overheads by adopting prudent cost rationalization strategies.
“We have seen an improvement in the main key performance indicators of the group which are important to our stakeholders,” he added.
The company’s financial data shows that earnings per share (EPS) fell from 0.49 to 0.59. Net assets per share from 3.74 to 4.99. Net margin of 4.11% to 5.71%.
Encouraged by the outstanding financial performance, Sierra Cables aspires to become a respected local manufacturer and a valuable contributor to the national economy. It is determined to continue its profitable momentum and explore new market niches such as solar cables and to introduce new product lines such as HDPE pipe to its portfolio through its subsidiary Sierra Industries Ltd.
Aiming to improve the renewable energy supply to meet the country’s energy needs, the company has set up a dedicated solar power manufacturing plant with an in-house tinning facility. The factory is currently in the process of upgrading its finished product warehouse expansion with state-of-the-art facilities that have set up a laboratory to facilitate testing of FR, LSHF cables.
Giving his insight into the future of the industry in Sri Lanka, CEO Jayatunga said, “We have a very positive outlook on Colombo International Financial City (Port City) and other expansion initiatives proposed by the government. which are intended to attract from and development benefits to the country. The Government’s initiative on these projects is a real encouragement, where we see all the manufacturers including the players in the cable industry grow in terms of turnover and profits thanks to such projects. We are also very honored to participate as the primary cable supplier in the majority of these projects. ”
The CEO also said that with the restriction of imports of non-essential items, locally made cables and other building materials have many prospects and the future outlook is very bright. “We believe that we are ready to capture large scale and public sector companies due to the government’s position of supporting local businesses, which is very encouraging in these difficult market conditions,” he added. .