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Net finance costs fell to 275 million rupees from 316 million a year earlier.
Pieris said collections were difficult and the firm was using it call centre and text messages to remind customers to keep arrears under control.
Group net profits fell 26 percent from a year earlier to 129 million rupees in the March 2014 quarter as revenues rose. The group reported earnings of 1.04 rupees for the quarter.
Group revenues rose 7.9 percent to 6.7 billion rupees and expenses rose 8.7 percent to 4.2 billion rupees. Direct interest costs rose 25 percent to 185 million rupees. Gross profits grew 5.2 percent to 2.3 billion rupees.
"Despite the fact that the current business environment is sluggish there is a reason for optimism when we look at the growth of revenue over the last one year," group chief executive Asoka Pieris told shareholders in an interim statement.
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