WATA - Watawala

WATAWALA PLANTATIONS PLC | WATA.N  - source- acuity

Rs. 15.40 | PER 5.6x
 
Watawala Plantations records a significant Y-o-Y PAT growth in Q1 2014/15, driven by a 14% increase in GP margins. Revenue growth during the quarter was boosted by the Tea segment (25% Y-o-Y revenue growth) and the Export segment (143% Y-o-Y revenue growth)


Watawala Plantation

Thanks SH for a detailed coverage

Thanks mate.

Sudden interest in Wata.N.. Any news or rumours ?
Wata was dull during this year and did low volumes, however, yesterday it rose about 20%, and including today it did 1.1Mn volume.
Big chunk has bought at 2.18 PM and rest untill market close.
So, Any news or rumours ?

(*Disclaimer: I'm holding wata and sold half today)

Let's wait for good news to come on Monday.

Results out.

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They were able to produce a good EPS than last year though the revenue is dropped.Nothing superb to me.

Palm oil segment has performed extremely well. However, the tea segment is the killer. Net profit the palm oil segment for the 1HFY16 is 436 million, while net loss for the tea segment is 242 million. Hence, the company is fairly valued as per the earning.

Plantation sector is going show a weak performance tea segment.

Will WATA keep the trend intact ?  
(Dividend announcement comes usually in MAY).

ahh ur waving for dividend? I thout a price appreciation.. he hee..

One of the best plantation companies has posted good profit helped by palm oil. Company must be appreciated for a review and outlook given along with the results.

"Nevertheless, we see some negative impact on selling price of Crude Palm oil following the recent reduction in import duty by LKR 20 /-, kg"
Not sure how this will affect profits.

Currently 5.1x P/E with Dividend yield of 6%

Good summary FG.

I see it going to 28~30 range before April this year.

Watawala is expected to release the Q4 financials soon. A condensed financial summary is produce below.
Rs Mn 2012/13 2013/14 2014/15 2015/16 2016/17 E
Revenue 5,435 6,246 6,848 6,299 6,506
Gross Profit 1,051 946 800 853 2,034
GP Margin 19% 15% 12% 14% 31%
PAT 680 497 391 518 1,614
PAT Margin 13% 8% 6% 8% 25%
EPS 3.06 1.83 1.65 2.60 6.81
DPS 0.75 0.85 1.45 0.75 1.50
DPO 25% 46% 88% 29% 22%

Current price is 34/-

Thanks

WATA has produced a good report as expected due to turnaround in both palm oil as well as tea. This is in contrast some of other stocks who have released financials better YoY but not as good as expected such as KVAL, TPL, etc.

Repurchase of shares

Watawala Plantations Sept quarter net down 12-pct

ECONOMYNEXT – Sri Lanka’s Watawala Plantations, which has spun off its tea business, said net profit fell almost 12 percent to 336 million rupees in the September 2018 quarter from a year ago.

Earnings per share were 1.67 rupees for the quarter with sales down 51 percent to 867 million rupees, according to interim accounts filed with the stock exchange.

Profits from palm oil were higher while losses in the new dairy business narrowed.

Watawala Plantations share closed at 21.50 rupees Thursday, down 50 cents or 2.38 percent.

In the six months to September 2018, EPS fell to 2.49 rupees from 3.20 rupees a year ago with profits from palm oil slightly lower and losses in the dairy business higher.

Watawala Plantations Managing Director Vish Govindasamy said earnings were supported by higher production volumes in the second quarter.

“Global palm oil prices declined in response to the supply side factors, which affected the local price,” he said in a note accompanying the accounts.

“However, this was negated owing to the upward revisions of duty on crude palm oil imported to the country.”

Watawala Dairy Limited showed signs of recovery in the second quarter compared with the first as the milk volume, prices and revenue increased significantly, resulting in a reduction in operating losses, Govindasamy said.

The loss for the second quarter fell to 25 million rupees from a loss of 45 million rupees in the previous quarter, with the total loss being 70 million for the six months ended 30 September 2018.

“These start-up losses, now within the budgeted parameters, are regularly monitored and controlled,” Govindasamy said.

“Increased milk production from the cattle coming to the second lactation in the herd and the first lactation of 246 cattle imported from Australia in May 2018 mainly accounted for the volume increase.”

Govindasamy said the volatility in the global oil palm market will remain and the strengthening of the US dollar against rupee will have mixed consequences for the industry.

The dairy business will further consolidate its operations with more focus on rationalizing feed costs with the milk yields, he said.
(Colombo/Nov08/2018)

Sri Lanka's Watawala Plantations invests Rs.1bn in dairy business

Sri Lanka's Watawala Plantations invests Rs.1bn in dairy business
Jun 03, 2019 14:20 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT- Sri Lanka's Watawala Plantations will be investing 1 billion rupees into its dairy operations, a top official said.

Watawala Plantations Managing Director Vish Govindasamy said that 1.06 billion rupees will be invested in Watawala Dairy Ltd as equity.

The funds will be used for capital restructuring of WDL, including converting a related party debt of 450 million rupees into equity.

WDL has a dairy farm with over 1,000 milch cows, set up in 2018. The business is expected to become profitable in three years.

Watawala's parent Sunshine Holdings sold its tea business Hatton Plantations for 1 billion rupees last week. (Colombo/Jun03/2019)

Watawala Plantations net up 67-pct on palm oil

ECONOMYNEXT - Profits at Sri Lanka's Watawala Plantation Plc grew 67 percent to 275 million rupees in the June 2019 quarter from a year earlier, helped by palm oil profits, while operating losses at its diary unit reduced, interim accounts show.

The group reported earnings of 1.29 rupees per share for the quarter. The stock closed at 23 rupees, up 90 cents.

Revenues grew 31 percent to 879 million rupees in the June 2019 quarter, and cost of sales fell 14 percent to 494 million rupees, boosting gross profits 62 percent to 385 million rupees.

"The palm oil sector revenue increase stems from the shifts in the yield curve and improvements made to the fertilizer regime," Managing Director Vish Govindasamy told shareholders.

"The volatility in the global oil palm market will remain and the excess supply of coconut oil into the domestic market will have some bearing on the demand for the palm oil in the remaining period of the year."

Global palm oil prices have fallen, along with coconut oil, but in Sri Lanka prices are kept artificially with import duties, giving higher than normal profits.

Sri Lanka's politicians started taxing imported vegetable oils due to pressure from politically powerful coconut growers. But as large farms moved into palm oil, they have lost part of the edible oil market, in classic unintended consequence of state intervention, economic analysts say.

In another unintended consequence, the import protection has incentivized farms to replace rubber, a competitive export product, with protected palm oil.

Now controls of are being placed to stop the expansion of palm oil with the spreading of an idea that palm oil trees suck out water or cause other environmental impacts.

Globally however there is pressure on palm oil because in Indonesia and Malaysia, tropical forests are cut down for palm oil, some of which is used for bio-diesel.

At Watawala palm oil brought revenues of 743 million rupees in the quarter, up from 509 million rupees and after tax profits of 309 million rupees.

Revenues from diary grew to 136 million rupees, up from 94.2 million rupees while gross profits grew to 163 million rupees from 140 million rupees.

The gross loss fell to 27 million rupees from 45 million rupees a year earlier.

The segment was charged financial costs of 50 million rupees, up from 11.4 million a year earlier generating net loss of 68 million rupees, up from 44.9 million rupees.

"The increased milk production was driven by majority of the herd moving into the second lactation cycle, while the stringent cost optimization measurers resulted in improved performance during the quarter," Govindasamy said.

"The dairy segment will further consolidate its operations with more focus on rationalizing feed costs with increasing the milk yields."

Thanks.

TPL.N0000
Share Price 7 Day 1 Year  
96.00        -0.9% 106.5%  

 
Second quarter 2023 earnings released: EPS: LK₨16.69 (vs LK₨0.98 in 2Q 2022)
Second quarter 2023 results:
EPS: LK₨16.69 (up from LK₨0.98 in 2Q 2022).
Revenue: LK₨1.92b (up 74% from 2Q 2022).
Net income: LK₨792.9m (up LK₨746.3m from 2Q 2022).
Profit margin: 41% (up from 4.2% in 2Q 2022). The increase in margin was driven by higher revenue.
Over the last 3 years on average, earnings per share has increased by 58% per year whereas the company’s share price has increased by 61% per year.