Sri Lanka’s LOLC September net up 36-pct with growing incomes


Nov 18, 2015 (LBO) – Sri Lanka’s LOLC group which has interest in financial services, insurance, plantations, trading and leisure said net profits for the September quarter rose 36 percent to 2.1 billion rupees.

The group reported earnings per share of 4.54 rupees for the quarter up from 3.34 from a year earlier.

For the six months ended September 2015 the group reported earnings of 8.44 rupees on total profits of 4.5 billion rupees.

The stock last traded at 95.00 rupees on Wednesday up 0.20 cents.

The group reported interest incomes of 9.3 billion rupees for the quarter, up 46 percent, interest expenses rose at a faster 49 percent to 4.5 billion rupees resulting net interest income to rise at a slower 44 percent to 4.8 billion rupees.

Income includes all contracts, rentals on operating leases, income on factoring of client debtors, earned premium on insurance contracts and IT service fees.

Revenues up 104 percent to 5.2 billion rupees and cost of sales rose at a faster 106 percent to 3.6 billion rupees resulting gross profits to rise at a slower 102 percent to 1.6 billion rupees.

Revenues include trading, manufacturing, plantation and other activities of the Group.

As per the segmental information financial services has recorded a 3.0 billion rupees profit while reporting a 1.0 billion profit from equity accounted investees.

It has recorded a loss of 310 million rupees from the leisure and entertainment sector.

The Group recently divested its 20 percent stake in Taprobane Holdings at a value of 5.50 rupees per share accepting the mandatory offer made by the major shareholder.

In October 2015, Browns Capital, a subsidiary of the Group acquired controlling stake of Saga Solar Power Private Limited for 407 million rupees to engage in to a 10 MW solar power project at Baruthkanda in Hambantota.