Taj Lanka enters profit mode

Taj Lanka Limited has broken free of long years of loss making and posted a marginal Rs. 0.5 million profit during the year ended March 31, 2003 but continues to carry heavy retained losses of Rs. 2.1 billion in its books, an interim statement reveals.

In provisional unaudited figures now before shareholders, the company has reported a substantial revenue increase to Rs. 673.1 million during the period under review from Rs. 422.9 million a year earlier. However cost of sales as well as administrative expenses have risen sharply.

Operationally, the company, owning the Taj Samudra Hotel in Colombo, reported a profit of Rs. 103.8 million, up from a loss of Rs. 34.8 million the previous year. But finance cost of Rs. 103.3 million had all but absorbed this. However, interest too had reduced from the previous year’s Rs. 140 million.

Taj Lanka recently restructured with its Indian principals infusing fresh capital enabling substantial debt waivers in return for partial settlement of bank overdues.

The company has an issued share capital of Rs. 1.4 billion and reserves of Rs. 2 billion against its heavy accumulated losses.