SIERRA CABLES Plc, one of the largest cable manufacturers in Sri Lanka with an international presence, recorded a staggering 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 Plc 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 Mn 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 operation 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.
Mr.Harsha Jayatunga, CEO of SIERRA CABLES Plc said, “despite production cost escalation triggered by the gradual rise in the world copper, aluminum and other key raw material prices, company was able to reduce general overheads by adopting prudent cost rationalizing strategies”.
He further noted “We saw an improvement in 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%”.
Encouraged by the remarkable financial performance SIERRA CABLES Plc, aspiring to become a respected local manufacturer and worthwhile contributor to the national economy, is determined to continue in their profitable path and explore further market niches such as solar cables and to introduce new product lines such as HDPE pipes to its portfolio through its subsidiary Sierra Industries (Pvt) Ltd.
As such, aimed at enhancing renewable energy supply to meet the nation’s energy needs, SIERRA CABELS has setup a dedicated plant for solar manufacturing with inhouse tinning facility. The factory facility is currently in the process of modernizing the expansion of their finished good warehouse with state-of-the-art facilities that have set up a laboratory to facilitate FR, LSHF cable testing.
SIERRA CABLES Plc are also recognized and positioned as a good corporate citizen and the most preferred work place among the employees and other stake holders, as well as being ranked very high as a socially responsible entity.
Giving his insights of the future of the industry in Sri Lanka, Mr.Jayatunga commented, “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. The Governments initiative on these projects are a real encouragement, where we see all manufacturers including the players in the cable industry growing in terms of sales and profits due to such projects. We are also very honoured to take part as the major cable supplier to the majority of these projects”.
He added “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.”
With a clear strategic direction for the next few years, backed by rock solid fundamentals in place, good leadership, teamwork and a highly focused approach, SIERRA CABLES Plc is well geared to not only strengthen their portfolio of offerings to the market, but to also explore more opportunities in the cable industry over the coming financial year