Business
Hayleys Fabric PLC ‘set to steer through’ stiff economic conditions
First Capital Research says considering the solid order book of Hayleys Fabric PLC and and gradual shift in orders from China to other destinations through the China-plus-one strategy, they broadly maintain their revenue target for Hayleys Fabric PLC at LKR 66.4 bn (previous-LKR 66.2 bn) for FY23 while marginally lowering their expectation for FY24 to LKR 75.5Bn (previous- LKR 76.1 bn).
“Topline of Hayleys Fabric significantly increased by 105.9%YoY (+11.7%QoQ) to LKR 16.8Bn compared LKR 8.2Bn recorded in 2QFY22 largely owing to the steep depreciation of LKR. Revenue in dollar terms too grew by 13.3%YoY to USD 45.5Mn cf. USD 40.2Mn in 2QFY22 backed by the sizeable contribution stemming from tier-1 customer segments such as Nike along with improved efficiency levels while, capacity enhancements through the latest addition SAT further strengthened the topline performance. Moreover, overall apparel exports during the July-Sep period grew by 13.8% compared to the same period last year reflecting the revenue growth of Hayleys Fabric. However, the apparel exports reverted with a negative growth of 12.9%YoY during Oct-22, as currently largest apparel importers in the West such as US and UK are facing severe economic challenges which has squeezed down the clothing budget of consumers resulting in a slow-down in orders from many brands”, First Capital said.
Several other facts mentioned in First Capital Research’s report are as follows.
“Earnings of Hayleys Fabric displayed an uptick of 27.3%YoY and recorded at LKR 501.4Mn backed by strong topline performance aided by LKR depreciation. Accordingly, revenue for the quarter climbed high by 105.9%YoY and recorded at LKR 16.8Bn with the improvement in apparel exports during the quarter while LKR depreciation further strengthened topline growth. On account of escalated cost of sales GP margin edged down by 145bps and recorded at 10.7% compared to 12.1% in 2QFY22. However, earnings contracted by 68.9% on a QoQ basis as a result of mounting raw material cost pressures and finance cost. Taking into consideration the high inflation levels at key export destinations and local market and higher tax impact, we lower our earnings target for FY23E to LKR 3.6Bn (-29% from previous target) and FY24E to LKR 4.1Bn (-26% from previous target). Accordingly, fair value for FY23 is estimated at LKR 35.0 (previous – LKR 60.0) and for FY24E is estimated at LKR 45.0.
“Suppliers of Hayleys fabric from China charged higher on raw materials owing to the economic setback and tight supply conditions which resulted in a sharp surge in cost of sales by 109.3%YoY (+14.6%QoQ) to LKR 15.0Bn cf. LKR 7.2Bn in 2QFY22 while LKR depreciation further aggravated cost pressures. As a result, GP margin skid low by 145bps to 10.7% while it declined by 226bps on a QoQ basis. Furthermore, high inflationary environment caused EBIT margin to slid lower by 113bps to 5.6% compared to 6.7% in 1QFY23. However, aided by the declining global crude oil prices First Capital expects the costs of synthetic yarn to decrease favouring Hayleys Fabric.”
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
