CIEL Group posted revenue of Rs 22, 61 billion, for year ending 30 June 2018, a 9% growth compared to the corresponding period last year. However, the Group’s Profit After Tax fell by 2, 6% at Rs 1, 09 billion. The assets grew by more than Rs 5 billion, from Rs 63, 1 billion to Rs 68, 8 billion. The Board of CIEL commented on the sectoral performances on the Group which include 5 cluster.
- The reduced profitability of CTL compared to prior year on account of the lower contribution from its Woven segment. The cluster’s activity has been impacted by the lower competitiveness of its regional operation in an environment of fierce international competition which is putting pressure on margins. The removal of export subsidies in India and a weak US dollar in the earlier part of the financial year also affected the results. The Knits Indian operations and the Knitwear regional segment remain loss-making. Loading and efficiencies of those factories are, however, improving and prospects are encouraging in a current challenging environment.
- In the Hotels & Resorts cluster, SUN shows a marked turnaround compared to prior year by posting a profit after tax of MUR 194M (2017: (MUR 112M)). With the reopening of all its renovated hotels and the yield maximisation strategy adopted in recent years, the group revenue was up by 12% percent on prior year. The tight cost management control also contributed to an improved EBITDA margin. Management is currently implementing measures to address the difficulties of the Kanuhura resort in the Maldives which reopened late December 2016. Forward bookings are encouraging and should lead to improve the financial performance of this unique Maldivian asset in the coming quarters.
- The Finance cluster posted yet another good financial year with a double digit growth in profitability mainly on account of the strong performance of the two banks within its portfolio. Bank One’s profitability was boosted in the last quarter of the financial year by a one-off cash settlement following resolution of an international court case. BNI Madagascar is still performing strongly in a challenging context for Madagascar with the forthcoming general presidential elections.
- The Agro & Property cluster has been negatively affected by Alteo’s local operations due to the reduced export sugar price. The results were also driven down compared to prior year by the low sugar prices and the reduced sugar cane availability in Kenya. These negative impacts have somehow been mitigated by the commendable performance of its Tanzanian operations and favourable gains from sale of land together with a much improved performance of its property cluster. Last year’s result for the Agro & Property cluster included non-recurring gains from land revaluation of MUR 226M.
- The Healthcare cluster, though still loss-making, showed distinct improvement on prior year. This year’s performance has been supported by the improved results of MSCL where Wellkin’s turnaround remains on track. Last year’s financial results were negatively impacted by a partial impairment of MUR 138M of its investment in Nigeria.