| Financial review |
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Segment Performance |
Vehicles, Lighting & Power Tools and Diversified segments showed an improved segment result compared to the previous year while Vehicle Parts & Service and Construction & Material Handling Machinery showed a decline. Adverse results in the Tata Passenger Vehicles and Chrysler & Jeep affected the sustained results by the vehicles segment. Power Engineering and Power Systems posted encouraging results in the diversified segment whilst the results of Medical Engineering & Telecommunications Solutions offset these gains to some extent. Construction and Mining Machinery and Fluid Management systems were the contributors to the decline in the Construction & Material Handling Machinery segment.
Emergence of non-auto businesses as areas of growth was evident during the year. Power Systems and Power Engineering businesses covering diverse areas including off highway propulsion systems, Power & Energy, Building Technologies led the way. The budgets for the year 2008/09 estimates a rapid growth in the non-auto business, which is in line with the overall long-term strategy of the Company. |
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Trends |
| The phenomenal growth momentum experienced during the past five years did not continue due to the reasons discussed earlier on. Borrowings did not increase significantly during the past two years which augurs well for the sustained efforts made in working capital management. |
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| A five-year summary of key financial data captures the growth experienced by the Group during past five years: |
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| Vehicles (No. of Units) |
2007/08
Rs. mn |
2006/07
Rs. mn |
2005/06
Rs. mn |
2004/05
Rs. mn |
2003/04
Rs. mn |
| Performance |
|
|
|
|
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| Turnover |
12,687 |
12,989 |
10,512 |
7,565 |
4,797 |
| Gross Profit |
2,375 |
2,129 |
1,590 |
1,206 |
846 |
| Profit after Tax |
205 |
302 |
265 |
177 |
100 |
| Financial Position |
|
|
|
|
|
| Total Assets |
5,831 |
5,199 |
4,570 |
3,195 |
2,252 |
| Current Assets |
4,368 |
4,193 |
3,794 |
2,461 |
1,692 |
| Borrowings |
2,785 |
2,840 |
2,795 |
1,609 |
958 |
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Turnover |
Turnover marginally reduced by 2% (increase of 24% in 2006/07) to Rs. 12.6 bn. However, the compounded growth rate during the past five years was 21%.
The vehicles segment contributed 66% (68% in 2006/07) to the turnover and recorded a 5% decline (growth of 21% in 2006/07) over the previous year. The key contributor to the segment turnover was the Tata commercial vehicle business led by the ‘Dimo Batta’. Phenomenally high tariff on import of luxury vehicles remain a deterrent in selling luxury vehicles in Sri Lanka.
Turnover of Vehicle Parts and Service and Lighting & Power Tools increased by 14% and 19 % respectively while Construction & Material Handling Machinery and Diversified Activities segment turnover declined by 15% and 11% respectively. |
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