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Hayleys Fabric PLC ‘set to steer through’ stiff economic conditions

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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.”



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USD 50 mn battery storage investment expected to power SL’s renewable energy push

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Arrival of the Battery Energy Storage System

Sri Lanka has taken a major step towards modernising its power infrastructure with the arrival of the country’s first commercial-scale Battery Energy Storage System (BESS), part of a USD 50 million investment expected to transform the integration of renewable energy into the national grid.

The first shipment of battery units arrived at the Port of Colombo recently for the landmark Galle and Matara BESS projects being developed by Galilee BESS (Pvt) Ltd, a subsidiary of KHEN Energy Limited. The projects are expected to play a pivotal role in enhancing grid stability, reducing renewable energy curtailment and strengthening the country’s energy security.

The shipment comprised 25 containers, including 18 battery units weighing 42 metric tonnes each, making it one of the largest and most technically demanding renewable energy cargo movements handled in Sri Lanka to date.

Energy industry officials describe the project as a milestone investment that will help bridge one of the biggest challenges facing renewable energy development—storing electricity generated from intermittent sources such as solar and wind power for use when demand peaks.

Once operational, the BESS facilities will support the National System Operator by absorbing excess renewable energy during periods of high generation and releasing it when required, thereby improving efficiency and reliability across the power network.

The technology is being supplied by global energy storage leader Sungrow Power Supply Co., Ltd., reflecting growing international confidence in Sri Lanka’s renewable energy sector and its long-term clean energy ambitions.

Beyond its energy significance, the project also highlights the increasing scale and sophistication of infrastructure investments entering the country.

Expolanka Freight (Pvt) Ltd was entrusted with the end-to-end logistics operation, overseeing customs clearance, specialised transportation, storage, unloading and final placement of the battery units at the project sites.

Finance and Project Director Fazul Ansar said the operation required extensive engineering studies, route assessments and rigorous safety planning owing to the hazardous classification and extraordinary weight of the cargo.

Head of Project Logistics Mohamed Niyas said months of preparation had gone into route surveys, lifting studies and risk mitigation planning to ensure the successful execution of the project.

Project officials said specialised multi-axle trailers and cranes with lifting capacities ranging from 100 to 150 tonnes were deployed for the operation, while access modifications and last-mile transport solutions were implemented at both project locations.

By Ifham Nizam

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AI and Data Analytics Summit 2026 drives the nation’s digital future

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Deshan Liyanage / Ransith Fernando / Prof. Lasith Gunawardena

The AI and Data Analytics Summit 2026 organised by the Sri Lanka Section of BCS, the Chartered Institute for IT was successfully held on 22nd May 2026 at Waters Edge, Colombo. The high-impact summit themed “Next Generation AI & Data Analytics: Skills & Thoughts for the Intelligent Future” brought together senior policymakers, global technology experts, industry leaders, academics, and innovators to explore how Artificial Intelligence (AI) and Data Analytics are reshaping the nation’s digital and economic future.

The event, endorsed by the Ministry of Digital Economy, was graced by Waruna Sri Dhanapala, Secretary to the Ministry of Digital Economy, who attended as the Guest of Honour, underscoring the government’s strong commitment to advancing AI adoption, digital innovation, and data-driven governance in support of Sri Lanka’s broader public sector transformation agenda. Dr. Sadeep Jayasumana, Chief Scientist at Octave, delivered the keynote address on Generative AI, sharing insights into its transformative potential.

Speaking on the significance of the summit, Prof. Lasith Gunawardena, Chairman the Sri Lanka Section of BCS, the Chartered Institute for IT noted that Artificial Intelligence and Data Analytics have become present-day enablers of innovation, economic growth, and societal progress. He emphasized that the summit was guided by BCS’s purpose of Making IT Good for Society and by the national need to bring together thought leaders, practitioners, policymakers, and industry experts to foster collaboration, knowledge sharing, and the responsible adoption of transformative technologies, thereby strengthening Sri Lanka’s digital readiness and supporting a resilient, inclusive, and globally competitive digital economy.

Ransith Fernando, Chair of the summit mentioned ” This year’s summit brought together 21 speakers who shared valuable insights, ideas, and experiences. We heard inspiring success stories, gained practical knowledge from industry practitioners, and explored strategic perspectives from business leaders. These conversations highlighted both the opportunity and the responsibility before us. While innovation is accelerating globally, Sri Lanka must align policy, talent, and industry readiness to truly operationalize AI at scale and ensure an inclusive and sustainable digital transformation.”

Deshan Liyanage, Co-Chair of the AI and Data Analytics Summit 2026 commented that this year’s summit was a fully sold-out event, reflecting the growing national momentum around Artificial Intelligence and Data Analytics in Sri Lanka. He extended heartfelt gratitude to all participants who joined and contributed to the success of the summit, as well as to the sponsors whose support made the event possible. Special appreciation was conveyed to Sysco LABS as the Strategic Partner, Linear Six as the Bronze Partner, InTalent Asia as the Resource Partner, and Motivista as the Event Partner. He also acknowledged the valuable collaboration of industry associations including SLASSCOM, FITIS, and CSSL, whose partnership helped strengthen and elevate the initiative.

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Eswaran Brothers empowers women through a transformative leadership journey

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Participants of Eswaran Brothers Exports’ She Transforms leadership development programme

As part of its commitment to advancing women’s empowerment and building a stronger leadership pipeline, Eswaran Brothers Exports (EB), a leading tea manufacturer in Sri Lanka, launched its flagship women’s leadership initiative, She Transforms, a customized six-month leadership development journey. Developed with award-winning leadership expert Senela Jayasuriya and supported by Value for Women, the programme forms a key pillar of the Company’s wider gender agenda focused on leadership capacity building, inclusion and long-term institutional change.

Women make up 44% of Eswaran Brothers’ workforce, yet only 23% held senior roles at the time of an initial gender diagnostic conducted with Value for Women and supported by FMO, the Dutch Development Finance Bank. The assessment found that despite their potential, many women faced unclear career pathways and limited structural support at critical life stages.

In response, Eswaran Brothers introduced strategic mindset and policy interventions designed to remove barriers and create a more enabling environment for women to grow and lead. These efforts included mentorship opportunities, enhanced support for employees returning from maternity leave, coaching for managers, and initiatives aimed at strengthening inclusion and career progression across the organization.

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