There has been a sharp downturn in the profitability of Kelani Cables Limited in the first quarter of the current financial year ended June 30, 2003 with the after-tax profit down to Rs. 3.1 million from Rs. 9.2 million a year earlier, provisional unaudited results now with shareholders reveal.

First quarter turnover was down to Rs. 139.5 million from Rs. 141.8 million during the comparative period the previous year, the interim statement reveals.

The operating profit was down to Rs. 5.9 million from Rs. 16 million a year earlier while the finance cost was up marginally to Rs. 2.8 million from Rs. 2.4 million pushing down the pre-tax profit to Rs. 3.1 million, down from Rs. 13.6 million a year earlier.

A small tax write-back of Rs. 1,722 against a tax charge of Rs. 4.4 million a year earlier did not impact on the bottom line.

Despite the downturn in profitability, net assets per share were up to Rs. 109.11 from Rs. 105.23 a year earlier and the share traded at a high of Rs. 52 and a low of Rs. 41. This compared to a trading range of Rs. 47.50 to Rs. 36 in the first quarter of the previous year.

Kelani Cables has an issued share capital of Rs. 54.5 million, capital reserves of Rs. 193.5 million, revenue reserves of Rs. 212 million and retained profits of Rs. 134.7 million in its books as at June 30, 2003.