LAXAPANA To Enter The Renewable Energy Biz
Posted 4,March

By Chaveendra Dunuwille

In Local News

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Formed in 1956 as Elephant Lite Cooperation Ltd and quoting on the Colombo Stock Market in 1982 Laxapana Batteries PLC pioneered the manufacture of D sized batteries in Sri Lanka. In 2005 the company named itself Laxapana Batteries Limited and reregistered as Laxapana Batteries PLC.

This business model was conceptualized to be on par with the government’s objective of increasing the total renewable energy production for the nation’s energy need. As a means to fund the investment the company is attempting to secure a long term debt that benefits from the low interest rates provided by the current government. Also the company proposes the raising of Rs 540 million through issued way of rights.
Following a general meeting held on the 10 th of February, 2021 the shareholders of the company gave approval to the rights issue that offers 36,00,000 ordinary shares. This will provide 12 new ordinary shares for already existing 13 ordinary shares at the price of Rs 15 per share.

Despite the challenge posed by the COVID- 19 pandemic to the economy Laxapana managed to deliver a strong and resilient performance in the financial year of 2020/21. The company saw its revenue increase by 14 % and profit before tax growing by 29.4 million LKR in the 3rd quarter of 2020/21. A revenue of 206.2 million LKR was the recorded revenue in the 3rd quarter and the last nine months of 2020 ending with December 31st , 2020 saw a revenue of 552.7 million LKR. The growth in revenue can be seen when comparing to the financial year of 2019/20 which valued at 180.4 million LKR and 506.2 million LKR respectively. The cumulative profit before tax of 100.4 million LKR for the nine months that ended in 31st December 2020 is a notable year-on- year increase of 113% over 47.2 million LKR recorded for last year’s nine months. The management highlighted that the company receives a strong revenue through its trading businesses as the demand for Laxapana branded products remains strong.

The company hopes that this new investment can be used as a means to diversify the company’s business portfolio & this trend is expected to be continued.