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Rogers FY pretax falls on rupee, global downturn

Published 12/03/2010, 07:45 AM
Updated 12/03/2010, 07:48 AM

* Pretax profit falls for second straight year

* EPS falls 5 percent to 24.61 rupees

* Shares climb 3.57 percent ahead of results release

PORT LOUIS, Dec 3 (Reuters) - Mauritius-based conglomerate Rogers posted a decline in full-year pretax profit on Friday, due mainly to a strong rupee and the global downturn denting its hotel and global business operations.

Shares in Rogers, one of the Indian Ocean island's largest companies and most traded shares, climbed 3.57 percent ahead of the publication of results as the market anticipated results would be better than previously expected, equities analysts said.

The results were released after the local bourse closed at 0930 GMT.

The company said profit before tax fell 12.8 percent to 652 million rupees ($21.20 million) for the year ended Sept. 30.

"The performance of the hotels sector and global businesses were affected by the weak market conditions and a strong Mauritian rupee," Rogers said in an unaudited financial statement.

But it noted an improvement in the performance of its domestic-oriented sectors, including its logistics and aviation operations, which were helped by the country's local economy comfortably outperforming the economies of its key export markets in Europe.

Post tax losses at the group's hotel operations widened to 278 million rupees during the period from 127 million a year earlier. Its real estate and agribusiness sectors posted a loss of 146 million rupees, compared with a loss of 125 million previously.

Meanwhile, its property business posted a 73 percent leap in post tax profit to 260 million rupees.

Mauritius' gross domestic product is projected to grow by 4.1 percent this year.

Earnings per share for the 12-month period fell 5 percent to 24.61 rupees.

The global slump hit the island's tourist industry hard as consumers cut down on long-haul holidays and hotels discounted prices, curbing growth in one of Africa's traditionally most stable and prosperous economies.

Rogers said it expects the results for the hotels sector to improve with all its hotels being fully operational and an increase in tourist arrivals.

"The growth in the financial Services sector and delivery of villas in Bel Ombre provide better prospects of performance for next year," the company said. ($1=30.75 Mauritius Rupee) (Reporting by Jean Paul Arouff; Editing by Richard Lough and Jon Loades-Carter)

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