Dec 03, 2007 (LBO) – Lanka Orix Leasing Company (LOLC) said September quarter net profit fell 48 percent to 86 million rupees from a year ago with a sharp increase in provisioning for bad loans. It also said the company acquired 2,600,000 shares (29.18 percent) of Touchwood Investments Limited and 4,982,953 shares (20 percent) of People’s Merchant Bank in October. Group revenue rose to 1.4 billion rupees from 979 million rupees, according to interim results sent to the Colombo Stock Exchange.
Its provisioning for bad loans went up to 76 million rupees from 13 million rupees a year ago.
First half net profit was down 23 percent year-on-year to 283 million rupees.
In a breakdown of its results for the six months to September, LOLC said leasing, hire purchase and other products brought in pre-tax profits of 314 million rupees, followed by 70 million rupees from factoring and 14 million rupees from insurance brokering.
Securities brokering made a loss of 11 million rupees.
The company said its subsidiary, Lanka Orix Factors, bought a 51 percent stake in Sundaya Lanka (Private) Limited for 6.2 million rupees on 30 August 2007.