On 30 September 2019, the Colombo Stock Exchange (CSE) featured 290 companies representing 20 business sectors with a market capitalisation of over Rs. 2.7 trillion. Of these corporates, the first 100 (by virtue of their reported revenue for financial year 2018/19) have been ranked in this special annual edition of the LMD 100.
The LMD 100 Second Board comprises the 50 entities that didn’t make the LMD 100 (or First Board) cut in financial year 2018/19.
With revenue of Rs. 5 billion in financial year 2018/19, Alumex is the first ranked entity in the LMD 100 Second Board, having advanced by eight spots from the previous year. Its top line recorded an increase of 14 percent year on year although profit after tax (PAT) was more than halved to 126 million rupees in the period under review.
Printcare sits in second place, also having moved up – by three notches – in the LMD 100 Second Board rankings. Its revenue of Rs. 4.9 billion for financial year 2018/19 reflects an upside of four percent compared to the prior year. However, Printcare was in the red to the tune of 182 million rupees, which follows a loss of Rs. 117 million in financial year 2017/18.
Whereas it was part of the first board rankings in the prior year, Janashakthi Insurance Company occupies the number three position in the LMD 100 Second Board in the latest edition. This is by virtue of its revenue declining by 69 percent to Rs. 4.8 billion in the 2018/19 financial year. Nevertheless, the insurer’s post-tax profits surged by 268 percent year on year to 9.3 billion rupees.
Malwatte Valley Plantations climbs the LMD 100 Second Board to fourth place on the ladder with a turnover of Rs. 4.8 billion (up 3% from the prior year) in the period under consideration. But its bottom line failed to impress, falling by as much as 81 percent to 107 million rupees for the year ended 31 December 2018.
The top five in the LMD 100 Second Board includes Bairaha Farms, which recorded a 12 percent increment in revenue versus the preceding year to a little over Rs. 4.7 billion. Its PAT also witnessed a marginal improvement of two percent compared to 2017/18, reaching 413 million rupees.
Number six ranked Sierra Cables isn’t far behind with a reported turnover of Rs. 4.7 billion (16% annual growth) in the LMD 100 Second Board. In financial year 2018/19, the company recorded an after tax profit of 12 million rupees compared to a loss of Rs. 39 million in the year prior.
While Bogawantalawa Tea Estates completed the LMD 100 first board in the 2017/18 financial year, it features in seventh place in the LMD 100 Second Board in the latest rankings. The plantations company experienced a seven percent revenue contraction (to Rs. 4.5 billion) in 2018/19 in addition to absorbing a post-tax loss of 46 million rupees.
Swisstek (Ceylon) also surpassed Rs. 4 billion in revenue and has moved eight spots up the ladder to No. 8 in the LMD 100 Second Board. On the other hand, its bottom line of one million rupees in 2018/19 compares poorly against a PAT of Rs. 378 million in the previous financial year.
Ninth place in the secondary listing of Sri Lanka’s listed entities goes to LOLC Development Finance whose income remained flat (at Rs. 4.3 billion) in financial year 2018/19 – it was placed 12th in the prior year’s rankings. And the company suffered a loss to the tune of 154 million rupees versus a profit after tax of Rs. 362 million in 2017/18.
Arpico Finance Company rounds off the top 10 of the LMD 100 Second Board, having progressed by a substantial 22 notches in this year’s rankings. Its income of Rs. 4.2 billion reflects an upside of 29 percent year on year while the company’s bottom line expanded by five percent compared to the corresponding profit in financial year 2017/18.
Total revenue of the latest LMD 100 Second Board amounts to Rs. 172 billion or thereabouts, which represents a six percent decline compared to the preceding year. And cumulative profits contracted by 25 percent year on year to 14.6 billion rupees. As for total assets, the aggregate base expanded by a marginal two percent (to Rs. 440 billion) whereas shareholders’ funds (Rs. 130 billion) dipped by one percent in the period under review.
There are six new entrants to the LMD 100 Second Board – they comprise Hatton Plantations, Central Industries, Trade Finance & Investments, Kotmale Holdings, Nation Lanka Finance and Dankotuwa Porcelain.
Meanwhile, four entities have been displaced from the LMD 100 Second Board – viz. The Finance Company, Hotel Developers (Lanka), Browns Capital and Madulsima Plantations.
The majority of corporates (14) that feature in the LMD 100 Second Board are from the plantations sector. Finance and manufacturing companies account for 10 and nine entities respectively. There are also seven entries stemming from the beverage, food and tobacco sector, three representing hotels and travel, and two from the insurance sector.
Meanwhile, the chemicals and pharmaceuticals, construction and engineering, diversified holdings, and stores and supplies sectors have a single entrant in the LMD 100 Second Board for financial year 2018/19.
FOOTNOTE Public companies incorporated under the Companies Act No. 7 of 2007 or any other statutory corporation – incorporated or established under the laws of Sri Lanka, or any other state (subject to exchange control approval) – are eligible to seek a listing on the CSE to raise debt or equity. Companies that seek to be admitted to the official list of the exchange and obtain a listing of their securities are also required to comply with the relevant provisions of the Securities and Exchange Commission of Sri Lanka Act No. 36 of 1987 (as amended), and Listing Rules of the CSE.