El-Sewedy Electric has achieved net profits worth EGP 1.66bn in the first half of 2016, with 1.9 per cent increase compared to EGP 792.9m at the same period of 2015.
Consolidated profits of the company in Q2 of 2016 rose by 68 per cent to hit EGP 893,0m as against EGP 532.9m at the same period in 2015.
The company’s revenue witnessed a 2 per cent increase annually to hit EGP 10.7bn in the first half of 2016. The company’s cables sector increased its sales volume by 19 per cent; however the contracting sector dropped 19 per cent as against the same period in 2015. Revenues of meters, transformers and other products increased by 37 per cent.
Although, revenues are hardly increasing, total profits rose 39 per cent compared to last year and total profit margin increased from 17.8 per cent to 24.5 per.
El-Sewedy’s contracting sector witnessed 30 per cent increase in profit margin, compared to 17 per cent in the same period of 2015.
This came as a result of the company’s new power station in Angola and the pound fall which affected the company positively as it receives its cash in foreign currencies.
On the other hand, the pound price fall has negatively influenced the company because the price of imported raw materials used in manufacturing cables, has risen. However, the company could increase its cables sector’s profit margin by 14 per cent.
Although, El-Sewedy’s revenue dropped in Q2 of 2016, total profits rose by 22 per cent as compared to Q2 in 2015. Contracting sector revenue slid 40 per cent which resulted in total revenue fall.
