Sector Reviews
Transportation & Logistics
Business Domain
Led by Hayleys Advantis Ltd., the Sector is a market leader in Sri Lanka’s transportation and logistics industry, providing integrated logistics, international freight management, marine services and terminals & engineering services. The Sector comprises of 25 companies, one based overseas.
Key Performance Indicators
| Indicator | Measure | Unit | FYE 31st March | ||
| 2013 | 2012 | 2011 | |||
| Growth | Revenue | Rs. mn | 11,343 | 8,644 | 7,527 |
| Earnings Before Interest and Tax | Rs. mn | 982 | 592 | 563 | |
| Profit After Tax | Rs. mn | 778 | 492 | 422 | |
| Assets (Avg) | Rs. mn | 5,789 | 4,309 | 4,245 | |
| Capital Employed | Rs. mn | 3,521 | 2,682 | 2,931 | |
| Profitability | Return on Average Capital Employed* | % | 28 | 22 | 19 |
| Liquidity | Current Ratio | Times | 1.53 | 1.56 | 1.72 |
| Stability | Gearing | % | 14.72 | 12.56 | 14.44 |
| Asset utilisation | Asset Turnover Ratio | Times | 1.96 | 2.01 | 1.77 |
| Productivity | Ebit per Employee | Rs. mn | 1.00 | 651 | 729 |
* Excluding Real Estate
Operations
The Hayleys Advantis Group possesses a dedicated, multi-skilled and high performing team backed by strong relationships with principals and partners, and provides a complete range of services in transportation and logistics.
Recording its highest profit before tax of over Rs. 1 bn, the key activities during the year included the provision of support services in the Mannar Basin oil and gas exploration, securing new agency representation with key principals, expansion of our logistics operations in Hambantota and acquiring 3PL new businesses accounts.
The main challenges faced during the year include fluctuations in freight rates that affected the agency business, a general slowdown in Sri Lanka’s import and export volumes, high financing costs, exchange rate fluctuations and continued stagnation in the world economy.
Strategies in Action
Logiventures builds ‘Convertainers’ (including portable cabins) which comprise a framework of individual shipping containers linked by a corridor walkway. The containers are modified to meet customer specific needs with doors, windows, lighting, insulation, sanitation facilities and air-conditioning. As these units are portable, fast deployable and modular they are a cost effective solution to conventional housing.
Logiventures offered comprehensive automotive logistics solutions for importers to clear their vehicles at the newly opened Port in Hambantota. The company is also geared to offer services including documentation and customs clearance of vehicles and inspection prior to dispatch by car carrier trailers to any location specified by the importers.
Outlook
The ongoing infrastructure developments, particularly in the maritime and aviation sectors lend opportunities for Hayleys Advantis to play a bigger role in Sri Lanka’s transportation and logistics industry. With Sri Lanka’s emerging role as a maritime hub in the region, a number of opportunities would arise in this sector. They include expanding agency representation, enhancing marine service offering and strengthening the capability of inland projects with the acquisition of relevant assets.
