June 15, 2018 (LBO) - The woes of Colombo Stock Exchange listed stocks continue with the financial results of construction company MTD Walkers (KAPI). For the year ended March 31st 2018, KAPI has reported a staggering loss of Rs2.
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87bn, Analysts say this is one of the largest losses of any listed company in recent memory.
Many construction companies in Sri Lanka had benefited from contracts with the last government. However, with the new regime in power since January 8th 2015, several companies have reported rocky results.
The company is sitting on a large balance sheet of Rs46bn, and a significant debt load of Rs30bn. Payables are also a significant Rs8bn. With such large losses being reported, it is uncertain how the company can continue to operate with such a large debt load.
KAPI is 90% owned by Malaysian investors who have pumped billions into the company over the last several years, only to produce a retained net loss of Rs1.4bn.
The stock last traded at Rs13.4, less than half of its Rs33 net asset value.
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MTD Walkers (KAPI) reports a massive loss of Rs2.8bn
