The CIEL group has announced its financial results for the year ending June 30, 2026, showcasing a significant improvement in its performance. The company's net profit after tax stood at Rs 4.3 billion, marking a 13% increase from the previous year. This growth was driven by a strong performance across its various business segments. The consolidated revenue of the group increased by 8% to reach Rs 41.2 billion.
The EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of the company saw an 18% increase, reaching Rs 8.5 billion. The operational margin also improved to 20.6%, reflecting the company's solid operational performance and cost management across its portfolio. The growth in the hospitality sector, expansion of healthcare operations in Mauritius and Uganda, and improved banking revenues offset the relatively modest contribution from textile activities in the region.
The company's performance was also influenced by its textile operations in India, which maintained a favorable momentum. However, the profit attributable to shareholders stood at Rs 2.3 billion, representing a 4% increase from the previous year. The earnings per share (EPS) were reported at Rs 1.33. The slower growth in EPS compared to the net profit was primarily due to lower profitability in the textile activities wholly owned by the group.
CIEL's cash flow also saw a significant boost, with the free cash flow reaching Rs 4.9 billion. This improvement was driven by enhanced operational cash flows across its businesses. The company is utilizing this strong cash position to pursue strategic investments, particularly in the expansion of its healthcare activities, renovation of hotel assets, and development of its medical device manufacturing platform in India.
These investments align with CIEL's strategy to strengthen its market positions and support long-term growth drivers. On the financial front, the company's net debt with interest stood at Rs 16.4 billion. The evolution of the debt reflects the consolidation of the stake in C-Care International Limited (CCIL) and investments made to support the group's development. Despite this, CIEL maintains a balanced financial structure, with a debt-to-equity ratio of 29.6%.
Guillaume Dalais, Group Chief Executive of CIEL Limited, commented on the results, highlighting that investments in healthcare, hospitality, and medical device manufacturing are opening new growth avenues in the markets where the group operates. He emphasized the company's commitment to executing its strategy, generating cash, and disciplined capital management. The board of directors has declared a dividend of Re 0.35 per share for the year ended June 30, 2026.
The positive financial performance of CIEL reflects the company's diversified portfolio and strategic focus on growth sectors. With a strong financial position and ongoing investments, CIEL is poised to capitalize on emerging opportunities and drive sustainable growth in the future. The company's commitment to operational excellence and strategic investments is expected to yield long-term benefits for its stakeholders.
Key points
- CIEL reports a 13% increase in net profit to Rs 4.3 billion for the financial year ending June 30, 2026.
