A further 16 percent YoY increase in cost of sales to Rs. 39.4 million during the period under review also contributed significantly to the decline in gross profits of the hotel.
Marketing as well as administrative expenses of LHL increased from Rs. 7 million during the previous year’s final quarter to Rs. 9.1 million and to Rs. 95.5 million during the period under review from Rs. 91 million during the corresponding period of 2012 respectively.
Furthermore, during the period in question, finance income fell 56 percent YoY to Rs. 1.3 million.
Earnings per Share (EPS) for the quarter ended March 31, 2013 stood at Rs. 1.24 as against Rs. 1.75 during the previous year.
Meanwhile for the year ended March 31, 2013 LHL posted a net profit of Rs. 112.1 million, a marginal YoY increase of 1 percent.
The growth in bottom line was largely aided by a substantial growth in revenue to Rs. 614.7 million during the year under review from Rs. 539.1 million in 2012. EPS during the year under review stood at Rs. 2.44 in comparison to Rs. 2.42 during the previous year.
As at March 31, 2013 Jetwing Hotel Management Services (Pvt) Ltd. were the largest shareholder of the hotel with a stake of 36 percent while the Employees Provident Fund (EPF) was the third largest. EPF held a stake of 11 percent in the hotel as at March 31, 2013.
According to Jetwing Hotels Group Chairman Hiran Cooray, the group is currently negotiating a Rs. 1.2 billion private placement.
The proceeds of the private placement is to be utilized to partially fund the construction of four hotel projects, namely Jetwing Yala, Jetwing Colombo, Jetwing Dambulla and Jetwing Reef Uppuveli on the East Coast.