CIEL sees profit after tax up 152% for 9 months ended 31 March
The textile segment in particular performed well with Rs 377 million in profits compared to Rs 65 million in the nine months ended March 31, 2013. (Image: CIEL group)
Mauritian conglomerate CIEL saw post-tax profits rise 152.14% to Rs 634.87 million for the nine months ended 31 March, compared to Rs 251.79 million in the year-ago period.
Besides, revenue was up from Rs 150,000 a year-ago to Rs 7.24 billion in the nine months ended 31 March 2014.
It may be noted that CIEL Ltd was formerly known as Deep River Investment Limited, before CIEL Investment Limited (CIL) was amalgamated into it. Accordingly, for the nine months ended 31 March 2014, the results incorporate those of both DRI as from 1 July 2013 and ex-CIL as from 25 January 2014, together with their respective subsidiaries and associates.
The management attributed the increase in profit to the good performance of the different segments overall, except Agro & property, as well as Healthcare, both of which saw a major decline in profits.
The textile segment in particular performed well with Rs 377 million in profits compared to Rs 65 million in the nine months ended March 31, 2013.
On the other hand, results from local sugar operations were adversely affected by the seasonality of the activity and a reduction in sugar price from Rs 16,500 per ton to Rs 16,000 in the quarter.
In addition, the sugar operations in Tanzania achieved a record production of 101,000 tons but increased competition from sugar imports continued to put downward pressure on sales volume and prices during the quarter under review.
Accordingly, the Agro and Property segment saw profits for nine months till 31 March 2014 dive by 67.9% to Rs 50 million, compared to 156 million in the year-ago period.
Although, the tourism industry remain difficult with the increased in competition, a major increase was registered under hotels and resorts, with profits of Rs 62 million for the nine months ended March 31, 2014 against Rs 9 million for the same period last year.
This increase in profit can be explained by the improved performance of Constance Hotels Service limited, an associate of CIL, on the back of better operational performance of its hotels and the acquisition of Halaveli in the Maldives.
On the other hand, Sun Resorts posted worse-off results, in response to which its management has already drawn up a strategic plan to improve operations in the medium to long term.
In addition, the group also recognized a gain from a bargain purchase of Rs 161 million on the acquisition of an additional 10% stake in Sun Resorts during the quarter under review.
The financial services segment saw profits rise to Rs 44 million compared to last year’s Rs 7 million, on the back of improved performance of the banking sector.
Furthermore, the acquisition of BNI in Madagascar should be completed as announced before the end of the financial year.
The healthcare segment hit a low of Rs 5 million, compared to a year-ago when it notched up profits of Rs 31 million.
This drastic decline is explained by an exceptional revenue of Rs 38 million last year from the Fortis Clinic Darné joint venture, which has been subsequently disposed of.
Finally as of end of April 2014, the announced private placement of Rs 2 billion has been fully committed, with the additional capital expected to help CIEL pursue its growth and development strategy.
CIEL group is a leading industrial and investment group of 22,000 employees, based in Mauritius since 1912. The conglomerate is structured around two clusters, CIEL Textile and CIEL Investment and has operations in the Indian Ocean, Sub- Saharan African and Asian regions.