Sri Lanka CIC profits up on government receipts

Feb 01, 2010 (LBO) - Sri Lanka's Chemical Industries (Colombo) has returned to profit in the December 2009 quarter helped by a 250 million rupee past due payment from the government.

In its annual report last year the firm said Chemcel (Pvt) Ltd, would make a speciality chemical with a US partner and was held through another unit, Chemanex which had invested 90 million rupees in the firm.

CIC posted group profits of 327.1 million rupees for the December against a loss of 21.3 million rupees a year earlier, interim accounts filed with the Colombo Stock Exchange showed.

Revenues grew 45.1 percent to 4,816 million rupees, while cost of sales grew at a slower 30.9 percent to 3,828 million rupees, allowing gross profits to increase 21.

3 percent to 327.1 million rupees.

The firm said administrative expenses rose 38.

8 percent in the December quarter from a year earlier, distribution expenses rose 15.2 percent to 235.75 rupees, but interest expenses fell 20.

3 percent to 139.23 million rupees.

Other income rose to 292.4 million from 38.5 million a year earlier. CIC said 250 million rupees of the other income came from a delayed government payment for selling fertilizer at c