📈 Kelani Cables Q2 Net Profit Up 3.9% to Rs 634.5 Mn

Sri Lankan power and telecommunications cable manufacturer Kelani Cables PLC reported a 3.9% YoY rise in net profit to Rs 634.53 Mn for the quarter ended Sept 30, 2026, supported by top-line growth despite forex headwinds. • Overall Financials & Operations: • Revenue grew 19.4% YoY to Rs 6.43 Bn from Rs 5.38 Bn, driven by steady manufacturing volume and resilient domestic cabling demand. • Basic EPS rose to Rs 2.91 (adjusted for a 1-for-10 share split in Dec 2025). • Cost of sales increased 20.3% YoY to Rs 5.21 Bn due to higher raw material input costs. • Gross profit gained 15.4% YoY to Rs 1.21 Bn, while operating profit rose 12.2% to Rs 805.55 Mn. • A 12.2% fall in income tax expense (Rs 215.52 Mn) cushioned the final bottom line. • Foreign Exchange & Overhead Impact: • Net finance income plummeted 67.8% YoY to Rs 44.48 Mn, dragged by a net forex loss of Rs 63.18 Mn (reversing from an exchange gain of Rs 26.22 Mn). • Operating expenses expanded, with administrative costs up 37.0% YoY to Rs 178.70 Mn and distribution costs up 13.0% to Rs 233.91 Mn. • Group pre-tax profit slipped 0.7% YoY to Rs 850.05 Mn. • Balance Sheet & Asset Position: • Total assets expanded to Rs 19.98 Bn, while Net Asset Value per share improved to Rs 74.52 (from Rs 70.24 in March). • Inventories grew to Rs 5.14 Bn, raising short-term borrowings to Rs 786.87 Mn for working capital support. • Kelani Cables paid an interim dividend of Rs 348.80 Mn in 1H. Shares closed the quarter at Rs 98.60.