Real estate business

Access Engineering 2Q powered by construction and real estate – Economic News

Access Engineering PLC posted strong financial performance in the three months leading up to September, as the group embarked on construction, infrastructure development and the rise of the real estate sector, which defied the challenges brought on by the pandemic. which affected many economic sectors.

The construction major and the civil engineering leader reported profits of 64 cents per share or 643.6 million rupees in the July-September quarter on revenue of 9.09 billion rupees, up from 21. 7% and 41.6% respectively compared to the comparable period last year.

For the six months ended in September, the group reported profit of 1.19 rupees per share or 1.19 billion rupees, up 96.5% from the same period last year.

Performance was supported by its construction, building materials and real estate segments, while the automotive segment with its Sathosa Motors PLC performed dismally due to prolonged restrictions on vehicle imports.

The group’s basic construction segment reported revenue of Rs 8.4 billion in the six months, up 25.4% from last year as the company listed a slew of government projects in which it is currently engaged in the composition of roads, bridges, housing and other buildings. This segment generated operating profit of Rs. 927.4 million, up 21% from a
one year ago.

The group saw its building materials segment sales increase more than threefold to 6.62 billion rupees from the same period last year due to sales of asphalt and ready-mixed concrete. to work. This segment generated operating profit of Rs. 709.5 million, compared to Rs 232.7 million in the comparable period last year.

The group remains optimistic about the future trajectory of this activity given the massive road development projects launched by the current government.

“The rural road network extension project, along with the road development programs financed by the AfDB and the World Bank, are increasing the demand for construction materials,” the company said in a statement. “The expansion of the motorway network, including the developments of the Central and Ruwanpura motorways and the elevated road network are expected to create an increased demand for building materials in the future,” the company added.

The company is today one of the largest asphalt and concrete producers in the market and recently increased its asphalt production capacity with the commissioning of new factories in Ganewalpola and Mathugama.
Meanwhile, the group’s real estate segment generated revenues of Rs 405 million compared to Rs 355.1 million a year ago on “above average” sales, the company said.

The group’s two ongoing real estate projects – Capital Heights Rajagiriya are expected to be handed over to owners by the end of fiscal year 2021/22, while Marina Square, having reached podium level in all buildings, is in the phase of construction of the superstructure.

The group’s iconic Access Towers I and II maintained higher occupancy levels for offices and retail spaces until September.

This segment generated operating profit of Rs 259.9 million, up 22.4% from a year ago.

The automotive segment generated revenue of 1.99 billion rupees and operating profit of 50.8 million rupees, compared to 2.71 billion rupees and 67.8 million rupees respectively in the period of l ‘last year.

The Employee Provident Fund holds 2.05% of the capital of Access Engineering, its twelfth shareholder.

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