brown & company plc
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8/6/2019 BROWN & COMPANY PLC
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BROWN & COMPANY PLC
Recommendation BUY • We recommend a strong buy rating based on company’s
strong future performance. Browns is expected to enjoy
improved profit margins owning to expanding market
shares whilst dominating its key revenue generating
sectors and innovating strategic investments.
• We anticipate a YoY Net Income increment of 42.20% for
FY2011/12E owning to growth prospects of Browns
supported by a 46.35% of YoY increase in GP margins
followed by substantial reductions in finance costs and
high contributions from associates’ results. Based on our
forecasts we have arrived to an intrinsic value of share of LKR 684.37 a price increase of 77.53% in next twelve
months period.
• A considerable development can be expected in the
industries where Browns has its presence as a result of
high growth potentials in the economy. We expect the
company to capitalize largely on this enhancement in
industry volume due to its market expansion.
• The company is currently associated with world leading
brands in its product portfolio which are holding strong
presence in the country over a long period of time.
• Browns have the benefit of its strong distribution network.
Service centers, regional and mini regional centers, dealer
network are currently strengthening its product
distribution and these are anticipated to expand.
Price LKR 385.50
Price Target LKR 648.58
Price Target (12M) LKR 684.37
Stock Code BRWN.N0000
Sector Trading
FY Ends March 31
May 13, 2011
Major Shareholders as of Dec 31, 2010
Name of Shareholder No of Shares %
Engineering Serv. (Pvt) Ltd. 16,588,962 23
Mason's Mixture Ltd. 13,732,632 19
Lanka Orix Leasing Co. PLC 4,519,200 6
Mutugala Estates (Pvt) Ltd. 2,986,524 4
Mr. S.V. Somasunderam 2,310,800 3
Pathregalla Estates (Pvt) Ltd. 1,961,658 3
ACE Bonus Investments Ltd. 1,755,000 2
Vyjayanthi & Company Ltd. 1,155,897 2
Mr. A.L. Devasurendra 1,098,900 2
Bank Of Ceylon A/C No.1 716,000 1
46,825,573 66
1M 3M 12M
BRWN 10% 48% 295%
TRD 6% 26% 215%
ASPI ‐3% ‐4% 73%
Figure 1 : Share Performance of Browns Market Profile
52W Price Range LKR 95.00 – 391.90
Avg Daily Volume 182,473Avg Daily Turnover LKR 38,607,974
Market Capitalization LKR 27,322Mn
Mkt Cap/Total Mkt Cap 1.10%
Shares Issued 70,875,000
Free Float 51.51%
Foreign Holding 10.04%
Market Beta 1.21
EPS LKR 49.66
NAPS LKR 289.80
Source: CSE Data & SMB Research D/E Ratio 16.28%
0.0
0.5
1.0
1.5
2.0
2.5
50%
100%
150%
200%
250%
300%
350%
400%
Volume Mn
Volume ASPI Trading BRWN.N0000
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Business Description
More than 136 years of business
operations in the country
A trading/manufacturing entity branched
out to new areas of business
Brown & Company PLC is a diversified business conglomerate
in Sri Lanka mainly dominating in the trading sector whilst
keeping its interest open for developing industries. Brownshistory counts back to 1875 where it commenced its business
operations mainly focusing on importing and manufacturing of
farming and agricultural machinery. Today the company
carries out its business in various segments broadening its
horizons not only to trading and manufacturing but also to
travel and tours, finance and plantations. As a strategic move
Browns has invested in new business ventures gaining
advantage of a more expanded business portfolio. The
company currently holds the market leadership in seven key
sectors which it operates. The Browns group comprise of
nineteen subsidiaries, three associates and one joint venture
company.
Figure 2 : Segmental Revenue 3Q
FY10/11
Segmental Overview
Browns group has identified its main revenue generating areas
under five segments namely Trading, Manufacturing, Travels &
tours, Finance and Plantations. These key business segments
of the company are further classified according to the
industries they are operating in. The trading segment is the
largest contributor to the group’s revenue whilst the
plantations sector became the second highest contributor
being the latest addition to the group.
Trading & Manufacturing Segments
The trading and manufacturing arm of the Browns group
caters to different business sectors namely Engineering and
Hardware, Power Generation, Agriculture, Pharmaceuticals,
Business Solutions and Electronics & Home Appliances.
Engineering and Hardware Sector
This sector carries out the businesses of importing and
distributing of hardware, industrial tools & machinery and
electrical accessories through general trading division,
marketing of consumer home appliances, domestic water
pumps & automobile batteries through consumer division and
marketing of FG Wilson generators through power systems
division of the company. In addition its subsidiaries Browns
Group Industries engages in importing & distributing of
Yanmar marine engines & marine accessories whilst Browns
Radiators (formerly known as Browns Dimo Industrial)
manufactures automotive, locomotive & non‐auto radiators
and oil & air coolers under Radco brand. Currently this sector
consumes stakes of 51%, 65%, 42% and 15% in power tools &
accessories, marine engines, radiators and power systems
respectively.
Figure 3 : Segmental Profit from
Operations 3Q FY10/11
Source: Browns Quarterly Report, 3Q FY10/11
Trading
60%
Manufactu
ring
10%Travel &
Tours
0%
Finance
1%
Plantation
29%
Trading
21%
Manufactu
ring
3%
Travel &
Tours
0%
Finance
32%
Plantation
44%
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Figure 4 : Revenue Breakdown of
Trading/Manufacturing Segment
FY09/10
Power Generation Sector
The battery division of Brown & Company PLC along with its
subsidiary Klevenberg (Pvt) Ltd and its associate Associated
Battery Manufactures (Cey) Ltd engage in the business of
manufacturing and trading of automotive, non automotive and
motorcycle batteries and trading of battery acid and battery
water. Brown’s battery division is the most successful
individual unit which generates over 20% to the total revenue
over the past years depicting impressive results. Browns
dominates the automotive battery segment with a 64% of
stake through Exide brand with 53% and Lucas brand with
10%. The company intends to increase Lucas’s share further to
21%.
Agriculture Sector
Agriculture division of the company imports and distributes
four wheel tractors and markets agriculture implements &
tractor implements where Browns’ subsidiary Sifang Lanka is
importing, assembling & distributing two wheel tractors.
Moreover as a latest addition, a separate division provides
plantation support services & energy efficient solution for
plantation industry and markets plantation machinery &
equipments. Browns is the market leader in the total tractors
market with a share of 73% whilst in four wheels segment it
holds 65% and in two wheels segment it holds 38%.
Pharmaceuticals Sector
Under this sector Vet Pharma division of the company markets
animal healthcare products & animal feed components and
provide healthcare products for poultry industry. Brownscurrently dominates the veterinary pharmaceuticals industry
with a market share of 33%.
Business Solutions Sector
The integrated business solutions division provides a total
office automation solution for the corporate entities as per
their requirements. Accordingly this division markets
computers, copiers, faxes, projectors and LCD televisions.
Browns is the market leader of this industry with a stake of
30%.
Electronics and Home Appliances SectorThe retail channel of the company is represented by this sector
which trades the products under all above sectors. Apart from
that electronic & home appliances are marketed in this
division.
Sugar & Ethanol Production
Moreover the company has ventured jointly into Galoya
Plantations with Lanka Orix Leasing Company Ltd for a stake of
49% whilst the rest is owned by the government. By 2011 the
operations of the company is scheduled to commence and
sugar has been identified as the main product and ethanol will
also be produced as a bi‐product.
Source: Browns Annual Report, FY 09/10
Engineerin
g &
Hardware
16%
Power
Generatio
n
34%
Agriculture
32%
Pharmace
uticals
3%
Business
Solutions6%
Electronics
& Home
Appliances
9%
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Travel & Tours Segment
Browns Tours operates as general sales agent for three major
air lines & BG Air services provides inbound & outbound
package tours and all travel related services.
Finance Segment
Under this segment Browns’ fully owned subsidiary standard
finance carries out an investment portfolio which generates
dividend and interest income as their main revenue. It has a
27% stake in Browns Rubber Industries & 39% stake in
Associated Battery Manufacturers.
Plantations Segment
Browns has ventured into Maturata Plantations Ltd &
Pussellawa Plantations Ltd through Browns Investments. These
two companies own 31 tea estates, 9 rubber estates & 4 tea
cum rubber estates for a total capacity of 12.6 Mn Kgs of tea,
3.7 Mn Kgs of rubber & o.4 Mn coconut nuts. The existing minihydro projects located in these estates currently supply 3.2
MW for the national grid and they are in expansion for further
power production by 16.8 MW.
Figure 5 : Economic Indicators Overview of the Industries
The economy is reaching new heights driven by the post war
optimism and upturned global climate. The projected GDP
growth of the country is expected to bring high dividends to all
the sectors of the economy enhancing the living standards of
the people. A new market has emerged due to the opening of
North and East regions bringing new opportunities.
The demand for hardware, industrial and electrical tools &
accessories is highly dependable on the economic climate
prevailing. Expected developments in construction industry
and economy will bring a boosting factor to improve the sales
volumes. However the high import costs affected by global
row materiel prices of these products are directly affecting the
sales prices.
The boat building business is now witnessing an upturn
considering the reentering to a previously inaccessible marketof North & East which covers a major part of the coastal line
for the fisheries industry. However this industry is heavily
exposed to cheap used marine engines and duplicate spare
parts. The prices of diesel could create an indirect affect on the
demand for marine engines.
The demand for power generators is being moving up with the
improvement of new projects in the construction,
telecommunications and power & energy sectors. High value
generators are now experiencing a high demand over the
other segments.
0
500
1,000
1,500
2,000
2,500
3,000
0%
2%
4%
6%
8%
10%
2006 2007 2008 2009 2010
Per Capita Income GDP Growth
0%
2%
4%
6%
8%
10%
2006 2007 2008 2009 2010
Construction
0
20
40
60
80
0%
10%
20%
30%
40%
50%
60%
2006 2007 2008 2009 2010
Fishing Diesel Prices
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Source : Central Bank of Sri Lanka
The radiator industry consists only two local manufactures and
other importers. The demand for radiators is expected to
enhance along with the growth of the vehicle population. The
industry is suffering from flood of used aluminum & plastic
radiator imports and unawareness amongst the customers.
The battery industry is projected to enjoy the opportunities
arose by the improved economic conditions and opening up of
new markets of North and East. The increase in per capita
income is expected to improve the demand for non
automotive batteries and increase in new vehicle registration
is expected to improve the demand for automotive batteries.
However the fluctuations in the global lead prices; the main
raw material in producing batteries affects both the cost of
production and the selling price. The battery industry is highly
affected by low priced products with inferior quality.
The developments in the production of agricultural productswill impact the tractor population to increase. This market
broadly segmented as four wheel tractors and two wheel
tractors. The industry was however further supported by the
government with the introduction of the AAIB Act. Moreover
the plantation support services business is also experiencing
an uptrend due to improvements in tea and rubber
plantations.
The market for veterinary pharmaceuticals & animal feed has
been showing a moderate growth as the standard of living of
people has been considerably improving. The demand for
organic foods in this market is emerging creating newopportunities for vendors.
The market for corporate business solutions and electronics &
home appliances is also predicted to grow supported by the
upgrading of the standards of both the corporate and
household sector with the economic growth.
Travel related services are now anticipated for a positive move
despite of the adverse outcomes over past periods of time.
Apart from positive economic environment, government
promotions on tourism, positive travel advisory on Sri Lanka
have made the projections on the tourist arrivals to a highernote.
Being one of the largest tea exporters to the global market Sri
Lanka’s tea production is estimated for a moderate growth
owning to favorable weather conditions, efficient use of
fertilizer & other inputs. However tea prices on average is not
expected to rise. Rubber is now experiencing very high price
levels due to global short supply, rising crude oil prices &
higher global demand whilst the rubber production also
predicted to increase with favorable weather & rising
productivity levels.
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
0.00
0.05
0.10
0.15
0.200.25
0.30
0.35
0.40
2006 2007 2008 2009 2010
Vehicle
Population
(Mn)
New Vehicle
Reg (Mn)
Vehi cle Polul ati on New Vehi cle Registrat ions
0
20000
40000
60000
80000
J a n
F e b
M a r
A p r
M a y
J u n
J u l
A u g
S e p
O c t
N o v
D e c
J a n
F e b
M a r
A p r
2010 2011
Tourist Arrivals
0
100
200
300
400
270
280
290
300
310
320
330
340
2006 2007 2008 2009 2010
Price LKRProd (kgMn)
Tea Production Avg Tea Prices
0
100
200
300
400
500
100
110
120
130
140
150
2006 2007 2008 2009 2010
Price LKR
Prod (kg
Mn)
Rubber Production Avg Rubber Prices
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Strategic marketing campaigns & more
value adding services
Strategized marketing moves like initializing Power Marts,
Lucas Premium Service Centers, Battmobile services & Auto
Rescue services, effective product support services through
staff training & communications, product promotions, service
campaigns, sponsorships and dealer motivations have also
contributed largely on gaining a higher portion. The company
is considering in providing a complete solution for their end
users by offering related accessories and support services
along with the products in order to confirm brand loyalty &
assure the market share. Further the company is maintaining a
good relationship with their suppliers, customers and
intermediaries and had taken proactive measures to build new
channels & strengthen current channels of these networks.
Browns is aggressively and strategically penetrating into
identified market segment especially North & East area.
Diverse clientele The company caters to individuals and institutional customers
including the government. Dealers as end users come undertheir retail channel. In certain sectors the company has made
agreements on supplying products. Arrangements are made
with projects initiated under Ministry of Fisheries, fisheries
organizations and Sri Lanka Navy. Power systems division has
agreed upon to supply generators to Central Hospitals. Browns
is the sole automotive battery supplier to all government
requirements as specified by the MOU signed with State
Trading Corporation. However the company is in a belief that
they do not face a threat of losing their major institutional
customers due to strong relationship their maintaining with
high quality, branded products and value added services.
Continuous product innovations Browns is diversifying its product portfolio through continuous
product innovations and product upgrades. BG Water pumps,
Lucas premium MF are some of latest additions to their
product range. Two new products are to introduce under each
product line in the hardware & power tools. Commercial
manufacturing of tractor trailers is to commence from current
year onwards. Automotive batteries, radiators are in the
process of introducing novel products. Fertilizer products are
to be introduced under agricultural division. Browns intends to
offer a complete package comprise of products, related
products & accessories for their customers.
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Figure 6 : YoY Price Appreciation of
BRWN.N0000
Investment Summary
We initiated a buy rating as we foresee the company’s ability
to generate high cash inflows through healthy revenue and
profit margins, strategic investment activities and equityfinancing activities. In our opinion Browns will have increases
in its key revenue sources mainly on increasing volumes due to
improved industry prospects and growing market shares. Being
dominated its key market segments company will not face
difficulties in price escalations of products whereas the
increases in cost of sales would not impact GP margins on
largely as they are capable of surpassing the cost increments
to end users. The increasing operational cost elements;
distribution costs emerge as a result of increasing volumes and
administration costs on high staff investments is expected to
bring down gross profits moderately. We arrived at a one year
price target of LKR 684.37 Which reflects a 77.53% upturn
from the current price level.
Browns future strategies are focused on continuous
investments into new business ventures. Accordingly they
have planned to enter areas of forestry, hotels & eco‐tourism
and real estate development. The accurate timing of entry and
exit of such venturing is expected to bring high inflow of funds
to the company. Apart from that the investment made on
Galoya Plantations is expected to generate cash inflows after
2011 with the commencement of production of sugar and
ethanol. Browns Investments has raised LKR 4,150 Mn of funds
issuing ordinary shares through a private placement. These
cash flows have also taken into account in the valuation.
Further this company intends to list its ordinary shares in CSE
through an initial public offer.
Figure 7 : Financial Highlights
Financial Analysis
We have arrived our forecasts on the financial performance
and position of the company evaluating each subsector of its
business. Revenue is expected to witness favorable increases
in the coming years providing high GP margins of 27.63% on
average. Bottom line is expected to increase impressively
registering a growth of 42% in FY2011/12E. However we do
not anticipate an improvement in the net income to such an
extent in the following years.
The high operational performance is projected to deliver
excess cash to the company. Yet we believe that initiatives on
market share developments will incur a considerable amount
of capital expenditure and investments on working capital
would improve moderately. The asset base of the company
will expand along with the enhancement in the business lines.
We expect Browns to keep their leverage on existing levels as
they will enjoy increased reserves and cash surplus.
Source : Company Data & SMB Research
0%
20%
40%
60%
0
5,000
10,000
15,000
20,000
25,000Revenue Revenue Growth
0%
10%
20%
30%GP Margin NP Margin
0%
10%
20%
30%
0
1,000
2,000
3,000
4,000
5,000Net Income ROE
0
20
40
60
0
200
400
600
800NAPS MPS EPS
0%
5%
10%
15%
20%
25%
30%
0
1,000
2,000
3,000
4,000
5,000
FY
06/07
FY
07/08
FY
08/09
FY
09/10
FY
10/11E
FY
11/12E
FY
12/13E
Borrowings D/E Ratio
23 34%‐41%
388%
230%
33%
78% 684
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S
Revenue
Gross ProOperatin
Net Inco
Total Ass
PPE
Working
Total Equi
Borrowin
Revenue
GP Margi
EBIT Gro
OP Margi
NP MargiEarnings
EPS**
Adjusted
ROE
ROSF
ROA
Assets Gr
D/E Ratio
Current A
NAPS**
MPS
P/EPBV
*This inclu
** Adjuste
Figure 8
10%
FY06/07 0
B Securitie
F
fitProfit
e
ts
apital
ity
s
rowth
th
rowth
EPS**
wth
ssets
des the LKR 1.2 B
d for the existing
: ROE Breakd
7% 6%
13%
2
FY7/08
FY08/09
FY09/10
F10
NP Margin
s (Pvt) Ltd
06/07 F
5,085
1,021532
524
8,532
2,477
254
5,298
1,501
13.71%
20.07%
5.14%
10.46%
10.30%74.90%
7.43
7.43
13.48%
13.60%
17.28%
89.47%
28.33%
1.10x
74.53
22.93
3.09x0.31x
n gain on selling
Issued Capital.
own of Brow
4% 23%19%
Y11E
FY11/12E
FY12/13E
07/08 F
5,797
1,244602
410
10,786
3,267
366
7,088
1,846
13.99%
21.47%
13.14%
10.38%
7.08%‐21.69%
5.92
5.92
6.62%
6.78%
11.04%
26.42%
26.04%
1.13x
99.93
30.74
5.20x0.31x
HNB Voting Sha
ns
13%
7%
FY
06/07
FY
07/08
78%
60%
FY06/07
FY07/08
X
Y 08/09
6,816
1,390861
413
15,706
5,983
(895)
9,331
2,664
17.58%
20.40%
43.20%
12.64%
6.06%0.75%
6.00
6.00
5.03%
6.48%
9.78%
45.62%
28.55%
0.79x
85.37
18.00
3.00x0.21x
es.(This has adj
5%
10%
21%
FY
08/09
FY
09/10
FY
10/11E
ROE
51% 52%64%
FY08/09
FY09/10
FY10/ 11E 1
Asset Turnover
K
Y 09/10 F
8,953
1,4911,644
1,148
18,591
7,041
371
13,458
1,918
31.35%
16.65%
90.85%
18.36%
12.82%177.80%
14.30
14.30
10.07%
12.95%
19.30%
18.37%
14.25%
1.13x
135.51
87.75
6.14x0.65x
sted in further c
**Intrinsic valu
25%21%
FY
11/12E
FY
12/13E
73% 73%
FY1/12E
FY12/13E
X
ey Financials
Y 10/11E
13,345
3,6684,593*
4,345*
23,312
7,227
2,098
16,319
2,657
49.07%
27.49%
106.41%
25.43%
23.57%173.99%
49.66*
35.95
21.13%
28.21%
33.17%
25.39%
16.28%
1.43x
179.14
289.80
8.06x1.62x
alculations to be
has taken as a
1.68
1.561.61
FY06/07
FY07/08
FY08/09
Equit
SMB
(LKR Mn) &
Y 11/12E
19,077
5,3684,867
4,473
29,131
9,613
2,622
19,809
3,496
42.95%
28.14%
43.43%
25.51%
23.44%42.20%
51.00
51.00
24.76%
25.03%
34.03%
24.96%
17.65%
1.45x
228.39
684.37***
13.42x3.00x
ter reflect the d
roxy for market
1.51
1.411.45
FY09/10
FY10/11E
FY11/12E
y Multiplier
esearch
9 | Page
ey Ratios
Y 12/13E
23,436
6,3865,144
4,566
34,862
11,156
4,183
23,358
4,122
22.85%
27.25%
5.69%
21.95%
19.48%2.10%
52.07
52.07
21.16%
20.55%
28.88%
19.67%
17.65%
1.63x
278.46
716.07***
13.75x2.57x
ta)
price.
1.48
FY12/13E
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Figure 11 : Market PE & Sector PE Valuation Summary
We have reached our valuation taking industry growth
potentials & Browns’ performance into consideration and
using Free Cash flow method. Allowing for a terminal growthrate of 5.25% and an equity risk premium of 4.71% we have
maintained a cost of equity of 12.01% to comprise 85% of the
target capital structure. Cost of debt estimated to a 14%
considering the company’s borrowing costs and prevailing &
expected interest rates. Accordingly the stock currently carries
a future value of LKR 648.58 at a WACC of 12.31%. We
estimated an EPS of LKR 51.00 for FY2011/12E and a one year
forward P/E of 13.42x considering intrinsic value as a proxy for
the market price. Our projected NVPS for the same period is
LKR 228.39 which trades at a one year forward PBV of 3.00x.
We carried out a sensitivity analysis to identify the impact
changes in terminal growth rate and WACC to both the target
price and the twelve months target price of Browns.
Source : CSE Data
Figure 9 : Sensitivity of Browns’ Target Price to Growth Rate and Cost
of Capital
Growth Rate
648.58 3% 4% 5% 6% 7%
Cost of
Capital
10% 666.38 764.49 945.21 1107.87 1451.24
11% 587.81 660.73 787.54 894.07 1098.24
12% 510.43 562.59 648.58 716.53 836.97
13% 477.82 522.39 594.28 649.73 745.2314% 437.83 473.98 530.78 573.38 644.37
Figure 10 : Sensitivity of Browns’ Twelve Months Target Price to
Growth Rate and Cost of Capital
Growth Rate
684.37 3% 4% 5% 6% 7%
Cost of
Capital
10% 689.87 797.79 996.59 1175.51 1553.22
11% 608.93 689.87 830.64 948.88 1175.51
12% 529.21 587.80 684.37 760.68 895.96
13% 495.62 545.98 627.21 689.87 797.79
14% 454.41 495.62 560.37 608.93 689.87
15
20
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M a y ‐
1 0
J u n ‐
1 0
J u l ‐ 1 0
A u g ‐
1 0
S e p ‐
1 0
O c t ‐ 1 0
N o v ‐
1 0
D e c ‐
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J a n ‐
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F e b
‐ 1 1
M a r ‐ 1 1
A p r ‐ 1 1
M a y ‐
1 1
ASPI Trading
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11 | Page
Figure 12 : Interest Rates & Inflation Investment Risks
• The volatile economic climate may have adverse and
unpredictable impact on all the sectors. Unexpected slow
growth in economy can drive industry volumes to pacedown which will affect to top line figures.
• The increases in vehicle importing taxes and duties
structure can have an effect on new vehicle registrations.
• High inflation numbers could affect consumer demand to
decline by diminished purchasing power. In a situation
where interest rates to move upwards on compensating
inflation it will have negative effects on the borrowing
costs.
• Company is vulnerable to volatile exchange rates as the
products being imported from overseas. Especially
fluctuations in the Japanese Yen will have impact on the
hardware, electrical goods and home appliances.• As the company is engaged in different business lines and
segments an intense competition in its key areas of
business could bring adverse effects to the company.
Source : Central Bank of Sri Lanka
0%
5%
10%
15%
20%
25%
2006 2007 2008 2009 2010
AWPR Inflation
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Subhashi Jayasumana Milindha Rathnayaka Dhanushka Sammandapperuma
Ashna Hassim
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Nadun Jayatilleke
(CEO)
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Mob: +94 712 769090
Sales Tel: +94 11 5733860
Lalith Sepalage Nuwan Perera Vino Ramasamy
Mob: +94 722 421003 Mob: +94 715 329609 Mob: +94 718 733725
Janak Dadallage Sampath Indike Kapila Weerasinghe
Mob: +94 715 329612 Mob: +94 715 329605 Mob: +94 715 329615
The information contained in this document has been compiled from sources that we believe to be reliable;
however we do not hold ourselves responsible for its completeness or accuracy. All opinions and estimates
included in this report constitute of our judgment to this date and are subject to change without notice.
Information contained in this document is not and should not be construed as an offer, or a solicitation of an
offer, to buy or sell any security or other financial instruments, and cannot be relied upon as a representation
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