Finance Loss

Chandi Dharmaratne

June 01, 2012 (LBO) – Sri Lanka’s The Finance Company Plc, which is under regulatory restructure lost 212 million rupees in the March 2012 quarter, sharply lower than the 2.0 billion it lost a year earlier. The firm reported losses of 1.33 rupees per share for the quarter. In the full year to March 2012 the firm lost 1.23 rupees per share on total losses of 196 million rupees.

Interest income for the March quarter was flat at 499.7 million rupees from 500 million rupees a year earlier, while interest expense fell 20 percent to 605 million rupees, but net interest income also fell 60 percent to 105 million rupees.

The Finance accounts showed investments in real estate down to 1.9 billion rupees by end March 2012, from a year earlier, though several lines of cashflow generating business were up.

Hire purchase loans were up to 3.7 billion rupees from 2.6 billion rupees and pawning (loans against gold) were up sharply to 1.0 billion rupees from 388 million rupees a year earlier.

There were also 86 million rupees of provision reversals.

Other income also fell in 2012, with a 69 million rupee negative amount, compared to a 115 million rupee gain last year.

Unspecified other operatin