March 07, 2008 (LBO) – Lanka Orix Leasing Company (LOLC) December quarter profits were boosted 250 percent with unrealized equity gains, while revenues grew 77 percent, its interim accounts and officials said. Group assets were 32 billion rupees, while LOLC’s own gross assets were 26.5 billion rupees.
Group net profits grew to 485 million rupees from 138 million a year before with non operating income bringing 264 million for the quarter up from 82 million.
“It consists mostly of Peoples’ Merchant Bank shares we bought at market value and the unrealized gain is what mainly is in other income,” Sunjeevani Kotakadeniya chief financial officer LOLC said.
LOLC bought a 20 percent strategic stake in Peoples’ Merchant Bank in October 2007.
Analysts originally expected LOCL to get management control of the firm, but the latest accounting treatment shows that the shares are now in the firms trading portfolio with mark to market profits coming to the profit and loss account.
LOLC also bought into forestry firm Touchwood in which it now holds a 29.18 percent stake and invested 100 million rupees in Gal Oya Holdings.
Group revenue for the 2007 December quarter was 1.92 billion rupees, up fr