Sri Lanka’s LOLC December net up 60-pct

Feb 15, 2016 (LBO) – Profits at Sri Lanka’s LOLC group which has interests in financial services, insurance, plantations, trading and leisure rose 60 percent to 2.2 billion rupees in the December quarter.

The group reported earnings of 4.66 rupees per share for the quarter up from 2.91 rupees from a year earlier on last year profits of 1.4 billion rupees.

For the nine months ended December 2015 the group reported earnings of 13.10 rupees on total profits of 6.2 billion rupees.

The stock last traded at 76.80 rupees on Monday down 20 cents.

The group gross income rose 52 percent to 16.5 billion rupees in the December quarter.

Interest income rose 27 percent to 10.0 billion rupees and interest expenses rose at a faster 39 percent to 4.0 billion rupees resulting net interest income to rise at a slower 20 percent to 6.0 billion rupees.

Interest income and income represent the income receivable for the period on all contracts, rentals on operating leases, income on factoring of client debtors, earned premium on insurance contracts and IT service fees.

It includes all income related to operations such as interest on overdue rentals, profit/loss on leases and loans terminated and collections on contracts written off.

Revenues up 83 percent to 5.3 billion rupees and cost of sales also rose at the same rate to 3.7 billion rupees resulting gross profits to rise at the same rate to 1.7 billion rupees.

Revenue includes revenue from trading, manufacturing, plantation and other activities of the Group.

Among the segmental information financial services has recorded 7.6 billion rupees profit for the nine months while reporting 2.3 billion profit from equity accounted investees.

It has recorded a loss of 477 million rupees from the leisure and entertainment sector and 140 million rupees loss from life and general insurance.

In October 2015, Browns Capital, a subsidiary of the Group acquired controlling stake (50.1%) of Saga Solar Power (Private) Limited (SSP) for 407 million rupees.

SSP is to engage in to 10 MW solar power project at Baruthakanda in Hambantota.