SIERRA CABLES Plc, one of the largest cable manufacturers in Sri Lanka with an international presence, recorded a 6.9% annual revenue growth which is Rs 5,265,169 during the 2020/2021 financial year compared to previous financial year (2019/2020). SIERRA CABLES points out this as the highest ever top line revenue recorded in the history of the company.
The group yielded the highest ever profit after tax (PAT) of Rs 314 million during the period which is a 37.4% growth compared to last year. The financial performance underscores the group’s ability to maintain a healthy Gross profit margin (GP) of 15.6% and Net profit margin (NP) of 5.7%. This is a commendable performance considering the prevailing pandemic and turbulence environment that the company had to operate in.
Revision to the company’s National long-term rating to AA- (lka) proved as an encouraging aspect which won the stakeholder confidence and enhanced the credit worthiness of the company. Company’s net finance cost reduced by 31.2%over the year due to the prudent financial planning and mitigation strategies company adopted throughout the pandemic period.
CEO of SIERRA CABLES Harsha Jayatunga, said, “despite production cost escalation triggered by the gradual rise in the world copper, aluminum and other key raw material prices, the company was able to reduce general overheads by adopting prudent cost rationalizing strategies”.
“We saw an improvement in the group's major key performance indicators that are of importance to our stakeholders”. Financials of the company shows Earnings per share (EPS) increased from 0.49 to 0.59. Net Assets per share from 3.74 to 4.99. Net margin from 4.11% to 5.71%”.
“we have a very positive outlook on the Colombo International Financial City (Port City) and other proposed expansion initiatives of the government that are destined to bring in many financial and development benefits to the country. We are also very honored to take part as the major cable supplier of these projects”.
“With the import restriction of non-essential items, cables and other building materials that are locally manufactured have many prospects and the future outlook is very encouraging. At SIERRA CABLES Plc, we believe we are geared to capture large-scale and public sector businesses due to the government stance in supporting local businesses which is very encouraging during these challenging market conditions.”
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