COLOMBO: Sri Lanka’s department store Odel, a unit of the Softlogic group, said profits rose 11 percent to 66.3 million rupees in the December 2017 quarter from a year earlier on lower tax payments despite thinning margins. The company had earnings of 24 cents a share in the quarter, interim accounts showed.
In the nine months to December 2017, earning amounted to 0.43 cents a share on total profits of 116.3 million rupees, down 32 percent from a year earlier on higher interest costs and administrative expenses. Odel last traded at 22.90 rupees Friday.
Revenue in the quarter rose 6 percent to 2 billion rupees, cost of sales grew 1 percent to a billion rupees, expanding gross profits by 11 percent to a billion rupees.
Distribution costs rose 11 percent to 124 million rupees and administrative costs also rose 11 percent to 678.9 million rupees. Net finance costs rose 58 percent to 115 million rupees. Taxes paid in the quarter fell 58 percent to 23 million rupees.
Odel said it invested 10 million rupees to form a new company to carry out a Board of Investment approved project.
The company said it has entered into an agreement with Access Engineering for 570 million rupees to construct the diaphragm wall and piling work of the proposed Odel department store.
Odel has also entered into an agreement with China Construction Third Engineering Bureau for 7 billion rupees to develop its Ward Place property.
