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Sri Lanka’s Kuruwita Textile’s exports to B’desh increases amid loss

Kuruwita Textile Mills, a unit of Sri Lanka's Brandix Apparel group reported exports to Bangladesh rose in June 2013 quarter. However, the company’s looses increased amid increasing costs. The firm lost Rs 211 million in the quarter up 355 per cent from a year ago period. It reported losses of Rs 8.46 per share in accounts filed with the Colombo Stock Exchange.

Kuruwita Textiles said revenues rose 11 per cent to Rs 1.82 billion in the June quarter, but expenses rose at a faster rate at 23 per cent to Rs 1.98 billion, a gross loss of Rs 157 million against a profit of Rs 44.7 million a year earlier. Exports to Bangladesh had grown to 41 per cent of sales in the June quarter up from 31 per cent last year. "However, it has to be noted that the Bangladeshi orders carry comparatively lower margins due to the lower average selling prices partly due to the effects of the off season for the company’s product range," Chairman Aslam Omar told shareholders.

He said raw material costs were 15 per cent higher than last year but they could not be passed on fully with higher selling prices. Electricity costs were also higher. "The management has been actively looking at mitigating these adverse impacts and is currently reviewing alternatives," Omar said without elaborating.