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FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » 14-Nov-2012 Interim financial statements 30-09-2012

14-Nov-2012 Interim financial statements 30-09-2012

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sriranga

sriranga
Co-Admin
Textured Jersey Lanka PLC (TJL), Sri Lanka’s premier manufacturer of knit fabric,has demonstrated its operating excellence by doubling net profits for the quarter ended 30 September 2012 (2Q FY2012/13), as per the financial results released to the Colombo Stock Exchange (CSE).

The company recorded a net profit of Rs. 157 m for the quarter versus Rs. 78mn during the same period in the last financial year, a feat achieved despite the slowdown in the global economic environment.

TJL was able to improve margins at every level for the quarter. Gross profits reached Rs. 210 m for 2Q FY2012/13, up 7% year on year, despite a 29% decline in sales revenues. Gross profits were also up 10% year-on-year for the first half (1H) of FY2012/13 as well.

In his release to the CSE, Textured Jersey Chairman Ashroff Omar cited improved production efficiencies, stricter management of overheads, lower yarn costs and the Sri Lankan rupee depreciation as the reasons behind this improvement.

Operating profits for 2Q FY2012/13 increased by a significant 86% compared to the same period in the last financial year. This was achieved through a substantial 49% year-on-year reduction in administrative expenses and a 43% reduction in distribution expenses for 2Q FY2012/13. These reductions were attributed to stricter cost controls and a reversal in provisions.

Additionally, through strong cash flows and working capital management, TJL was able to reduce debt and generate a finance income of Rs. 7.1 m for the quarter, as opposed to a Rs. 2.4 m finance cost during the same period in the last financial year. Omar mentioned that this was achieved through a significant reduction in short-term borrowings to Rs. 178 m as at 30 September 2012 from Rs. 1.7 b as at 30 September 2011, and the complete elimination of long-term borrowings.

The combined result of margin improvements through operating efficiencies, frugal cost management, strong working capital and cash management enabled TJL to record an impressive 101% year-on-year increase in net profits for 2Q FY2012/13. Net profits were also up 48% year-on-year for 1H FY2012/13 as well.

Looking towards the next quarter, Omar’s statement said: “Even though market conditions are likely to remain challenging next quarter, management is confident of a boost in sales volume owing to a strong order book with renewed interest from TJL’s top clients, which include Victoria’s Secret, Marks & Spencer, Intimissimi and Decathlon.”

He also mentioned that TJL was likely to continue on a strong profit growth trajectory for the next quarter as well, owing to the diligent management of operating costs and overheads.

On a more strategic note, Omar mentioned that the conceptual designs and regulatory approvals for TJL’s multi fuel boiler plant have already been completed and construction is expected to commence in 3Q FY2012/13. Once operational, this project is expected to reduce TJL’s energy costs substantially. Further, according to the statement, the acquiring of a fabric mill within the region as a part of TJL’s expansion strategy is moving forward according to schedule.

Omar concluded his review by stating that the management of TJL remain confident that with the current diligent planning, process streamlining and efficient controls in place, the company will continue to enhance shareholder value and deliver strong results in the coming quarter as well.
http://www.ft.lk/2012/11/14/textured-jersey-doubles-net-profits-for-2q-fy201213/

http://sharemarket-srilanka.blogspot.co.uk/

ccsentha


Vice President - Equity Analytics
Vice President - Equity Analytics
Why isn't it on CSE?

so TJL has a bright future?????

ccsentha


Vice President - Equity Analytics
Vice President - Equity Analytics
But TJL is trading around with a P/E of 8-9, that isn't that attractive ne????????????????????

sriranga

sriranga
Co-Admin
TEXTURED JERSEY LANKA, ABANS ELECTRICALS , CITY HOUSING & REAL ESTATE , ON'ALLY HOLDINGS, LANKA WALLTILES, SWISSTEK (CEYLON), THE BUKIT DARAH , CARSONS CUMBERBATCH , CEYLON BEVERAGE HOLDINGS, THE LION BREWERY CEYLON, BERUWELA WALK INN , CIC HOLDINGS , CENTRAL FINANCE COMPANY , SRI LANKA TELECOM , SHAW WALLACE & HEDGES , UNITED MOTORS LANKA , LANKA MILK FOODS (CWE), HARISCHANDRA MILLS , TANGERINE BEACH HOTELS , ROYAL PALMS BEACH HOTEL, SMB LEASING, SAMPATH BANK, ASIRI SURGICAL HOSPITAL , ASIRI HOSPITAL HOLDINGS, GALADARI HOTELS (LANKA) , THE HOUSING DEVELOPMENT FINANCE CORPORATION BANK, BERUWALA RESORTS , THE FINANCE COMPANY , CEYLINCO INSURANCE , MARAWILA RESORTS , YORK ARCADE HOLDINGS, SIGIRIYA VILLAGE HOTELS , HEMAS HOLDINGS , NAMUNUKULA PLANTATIONS, KEGALLE PLANTATIONS, MASKELIYA PLANTATIONS, RICHARD PIERIS EXPORTS , PEGASUS HOTELS OF CEYLON , EQUITY ONE , EQUITY TWO, AITKEN SPENCE , AITKEN SPENCE HOTEL HOLDINGS , BROWNS BEACH HOTELS, KALAMAZOO SYSTEMS, CEYLON PRINTERS , OFFICE EQUIPMENT, PARAGON CEYLON, THE LANKA HOSPITAL CORPORATION , FINLAYS COLOMBO , UNION CHEMICALS LANKA , ASIRI CENTRAL HOSPITALS , COLOMBO LAND & DEVELOPMENT COMPANY, SHALIMAR (MALAY) , SELINSING, THE GOOD HOPE , THE INDO MALAY, TOKYO CEMENT COMPANY , SOFTLOGIC HOLDINGS, MULLER AND PHIPPS (CEYLON) , MERCANTILE SHIPPING COMPANY, UNION ASSURANCE, J.L. MORISON SONS & JONES (CEYLON) , COMMERCIAL CREDIT AND FINANCE, VIDULLANKA , DIESEL & MOTOR ENGINEERING, SERENDIB HOTELS, JOHN KEELLS HOTELS, TAJ LANKA HOTELS , COLONIAL MOTORS, LAXAPANA BATTERIES , LANKA VENTURES , RICHARD PIERIS AND COMPANY, CEYLON INVESTMENT , CEYLON GUARDIAN INVESTMENT TRUST, GUARDIAN CAPITAL PARTNERS, DANKOTUWA PORCELAIN, CEYLON LEATHER PRODUCTS, ENVIRONMENTAL RESOURCES INVESTMENTS & COLOMBO PHARMACY COMPANY Interim Financial Statements for the period ended 30-09-2012 have been uploaded on the CSE website.

http://sharemarket-srilanka.blogspot.co.uk/

nimantha80


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Oh ABANS....

dineshfernando


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Terrible performance by the import oriented companies. Obviously due to currency devaluation and very high taxes and duties. Very disappointing.

opfdo

opfdo
Vice President - Equity Analytics
Vice President - Equity Analytics
thank you sri

The Alchemist


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Thanks Sri !

914-Nov-2012 Interim financial statements 30-09-2012 Empty Aitken Spence profits up 51% to Rs. 2.1bn Thu Nov 15, 2012 12:30 am

sriranga

sriranga
Co-Admin
Blue-chip conglomerate Aitken Spence PLC posted a pre-tax profit of Rs. 2.1 bn for six months ended 30 September 2012, an increase of 51.5 per cent from the corresponding period last year, the diversified heavyweight said.

The half-year results released to the Colombo Stock Exchange on Wednesday show a rise of 40 per cent in group revenue to Rs. 18.6 bn. Profit attributable to shareholders increased by 53.4 per cent to Rs. 1.37 bn while earnings per share rose by 53.4 per cent to Rs. 3.38, over the corresponding period.

"I am pleased to present yet another period of remarkable growth for Aitken Spence where profit before tax has grown by over 50 per cent for the first six months of the financial year. Our growth has been fuelled by an outstanding performance by our tourism sector," said Harry Jayawardena, Chairman of Aitken Spence PLC.

"We strongly believe that given the right conditions to operate, the private sector in Sri Lanka could be the primary driver for sustained high growth in the Sri Lankan economy. We welcome the steps undertaken and promised by the government to encourage private sector investment in the country," Jayawardena added.

"In the present global context of turbulence and uncertainty, we see a clear opportunity for Sri Lanka to position itself strongly as a preferred destination for high-value travellers. Hence, we believe that a robust private sector-led destination promotion strategy that underscores the country’s unique set of diverse attractions would help Sri Lanka’s brand positioning internationally".

Aitken Spence is the country’s largest resort operator with a chain of international award winning hotels across the country. Known for setting benchmarks in environmentally friendly operations, two of its hotels in Sri Lanka were recognized as the most energy efficient and the best for green practices and architecture during the last quarter.

Aitken Spence Travels, a joint venture with TUI, the world’s largest tourism company, is the largest inbound tourism operator in Sri Lanka with a network of over 200 leading tour operators in all major tourism generating markets.

Contribution from the Strategic Investments sector, which includes Power Generation, grew considerably when compared with the previous year. During period under review, Aitken Spence commissioned two wind and hydro power plants connected to the national grid, whilst its largest power plant in Embilipitiya was in full operation throughout the entire period. The Company was successful in winning two tenders for power generation in Bangladesh which will comprise a total capacity of 200MW.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=66052

http://sharemarket-srilanka.blogspot.co.uk/

sriranga

sriranga
Co-Admin
Hemas Holdings PLC reported earnings of Rs. 705 million during the second half of the 2012/13 financial year.

"The Group posted revenues of Rs. 12.9Bn, a growth of 29.0% over the previous year. Main contributors were Power, Healthcare and FMCG sectors, which recorded growth levels of 50.4%, 22.9% and 17.2% respectively. Group operating profits recorded a growth of 50.6%, to postRs. 1,036Mn (as per SLAS) while earnings for the half-year was Rs. 705Mn (as per SLAS), a year-on-year growth of 44.9%.Earnings were driven by Transportation, FMCG and Healthcare sectors, whose earnings grew by 52.2%, 39.6% and 33.0% respectively, and Leisure sector which posted earnings of Rs. 42.4Mn as against a loss of Rs. 32.8Mn last year," Hemas Holdings CEO Husein Esufally told shareholders.

"The FMCG sector performed very well to record a top line growth of 17.2% in a slowing market, to postRs. 3.7Bn of revenues. Sector earnings were Rs. 358Mn for the half-year, a growth of 39.6%. Both revenues and earnings were driven by the strong performance of our Personal care and Personal wash categories. Many of the brands in these categories have seen increasing market shares during the period with Velvet succeeding to become the market leader in the beauty soap category. Escalating food prices during the quarter resulted in the slow growth experienced by the Personal care market, a trend we expect to continue into the next quarter. Despite a slow market growth our personal care portfolio recorded a strong growth of 9.4%, helped by our baby care, oral care and hair care categories. Our flagship brandBaby Cheramy celebrated its 50thanniversary with the launch of Big Heart Project together with the Department of Probation and Childcare Services of the Ministry of Child Development & Women Affairs to fund the education of disadvantaged children from across the country during the crucial first five years of schooling. The Project will specifically fund children that are ‘at-risk’, or in danger of being institutionalized due to the financial inability of their families’ to care for them. Our sanitary napkin brand, Fems won the Silver Award for the Best Turnaround Brand of the Year, while our adult personal wash brand Velvet, secured the Bronze Award for the Product Brand of the Year at the 11th SLIM Brand Excellence Award Ceremony held recently.

"Our Healthcare sector continued the growth it has been enjoying in the recent past during the first two quarters of the current year as well. Revenue and earnings growth was primarily driven by the performance of our Pharmaceuticals business, which benefited from the healthy growth of the market to post an increase in top line of 21.9%. During the period under review the business successfully grew its market share to 17.6%(Source: IMS),further strengthening its market leadership position. Despite the negative impact caused by the depreciating currency the business posted a healthy profit growth of 27.0%. Our Hospitals business experienced a good half-year with inpatient capacity nearing 80%at Wattala hospital, contributing to the increase in Hospital revenues of 30.3% to Rs. 660Mn. During the year our hospitals continued its efforts to create awareness amongst the community as well as educating and training doctors on colon cancer, ophthalmology, chest infections and ENT diseases. These activities together with our high service standards helped the business achieve higher surgery volumes recorded since inception and enhance volumes of our laboratory, which helped the business close the half year recording an EBITDA growth of 41.2%.

"The Leisure sector enjoyed a good first half by recording a revenue of Rs. 656Mn, a growth of 44.9%. The performance of Hotel Dolphin helped the sector swing its earnings from a negative Rs. 33Mn to a positive Rs. 42Mn. The soft opening of Kani Lanka took place in September, rebranding it under the Avani umbrella as AvaniKalutara. Our hotels experienced a good first half recording an overall occupancy in excess of 70%, in a period which was predominantly the ‘low season’ and are looking forward to an exciting winter season. The sector’s performance was enhanced by our inbound tour operation, which recorded atop line growth of 34% for the period, largely driven by increasing volumes.

"The Transportation sector posted a top line of Rs. 465Mn,a 29.4% growth over the previous year. This was mainly on account of strong revenue growth in the aviation and maritime segments. Sector earnings rose by 52.2% to Rs. 155Mn during the first half of 2012. Our Aviation segment recorded satisfactory growth in passenger and cargo sales while our outbound tour operation too increased their share of the travel agency market. Our maritime segment’s performance was aided by increasing throughput volumes of our feeder business. The sector diversified its presence in this segment to handle casual callers and provide maritime services through our joint venture with Mercantile Shipping Company PLC which is expected to commence operations in the third quarter. Despite the growth of the maritime and aviation segments, our performance in the logistics segment was challenging. In September this year, we made an investment in Forwardair Logistics (Pvt) Ltd, strengthening our presence in this segment and allowing us to leverage our existing relationships in the industry for further growth.

"The Power sector recorded revenues of Rs. 3.1Bn a growth of 50.4%, led by the pass through effect of increasing fuel prices of our thermal power plant, Heladhanavi. However, the sector earnings suffered a decline of 29.6%, to record Rs. 87Mn, hit by the low rainfall experienced in the catchment areas of our hydro power plants, which contributed 42.7% to earnings. Sector profitability was further depressed by the unrealized negative impact of Rs.18Mn arising from a depreciating rupee on foreign exchange borrowings," Esufally said.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=66053

http://sharemarket-srilanka.blogspot.co.uk/

1114-Nov-2012 Interim financial statements 30-09-2012 Empty Mixed fortunes for Softlogic Holdings Thu Nov 15, 2012 1:19 am

sriranga

sriranga
Co-Admin
Group revenue, gross profit up, bottom line down

Softlogic Holdings Plc had experienced a mixed second quarter and a first half with growth in group revenue and gross profit whilst experiencing a dip in the bottom line.

The Group Revenue for the quarter was Rs. 6.3 b, a YoY growth of 14% while the group revenue for the six months grew by 24% over the corresponding period in 2011 to Rs. 12.3 b on the back of a strong expansion drive within the group.

The gross profit of the group for the second quarter, improved by 11% to Rs. 1.9 b with a cumulative growth for the six months surging 20%, surpassing Rs. 3.9 b.

Softlogic Chairman Ashok Pathirage said the increase in interest rates, depreciation of the currency and the
adverse macroeconomic conditions are the major challenges for the economy. This has negatively affected the disposable income of consumers.

Amidst the challenging environment, the group achieved a PBT of Rs. 312 m for the second quarter (down from Rs. 627 million a year earlier) and Rs. 567 million for the six months (down from Rs. 1.09 billion a year earlier).

The profit attributable to equity holders stood at Rs. 134 m and Rs. 205 m for the second quarter and for the six months respectively. In FY12 the respective figures were Rs. 224 million and Rs. 500 million.

The revenue from Softlogic’s Information Technology sector which consists of IT equipment, Nokia mobile phones and Dialog services declined during the second quarter recording a PBT of Rs. 4 m. The rise in cost amidst the depreciation of currency affected volumes of the IT segment and the mobile phone segment with consumers adopting a conservative behaviour. The sector was also affected by the foreign exchange losses incurred during the first six months.

In the Softlogic’s Leisure sector, the redevelopment and renovation of Centara Ceysands Resort and Spa are well under way, changing the resort from an 84-room hotel to a 166 room 4-star-plus resort, managed by the Thailand based Centara Resort and Spa management Group.

The hotel redevelopment project has already secured funding of US$ 10 m from International Finance Corporation (IFC) and is expected to open by 2013 winter season. The Movenpick City Hotel in Colombo, which is currently under construction, is progressing on schedule and anticipated to complete by 2014.

The Retail sector remained profitable with a PBT of Rs. 74 m despite the negative impact from the currency depreciation and increase in finance cost. The sector which is heavily dependent on imports suffered from a dip in volumes amidst the rise in prices hampering affordability. This is expected to be a short term effect until consumers get used to the new pricing structure.

With the per-capita GDP of the country expected to reach the US$ 4,000 mark, focus remains on the Retail sector as the planned expansion strategy remains intact. With the drive to widen its consumer base, the group opened its 156th consumer electronics showroom during the second quarter. In addition to the introduction of its own laptop brand ‘Maxmo’ earlier in the financial year which has had a successful launch;

Softlogic plans to introduce ‘Apple’ brand via its showroom network during the upcoming season.

The third quarter would also experience the introduction of the world-renowned ‘Mothercare’ brand launching its flagship store in Duplication Road, Colombo 4.

Softlogic’s Automobile sector incurred a loss before tax of Rs. 21 m during the period under review compared to a PBT of Rs. 12 m during the corresponding quarter of previous year. The steep escalation of duty for vehicles and the depreciation of the currency was a double blow resulting in an 80% drop in Sri Lanka’s new vehicle registrations for 2012. “A similar effect was witnessed in the Automobile sector of our group,” Pathirage said.

The Financial Services sector of Softlogic reported a PBT of Rs. 53 m, a decline from the corresponding quarter. The sector revenue for the six months grew by 150% to Rs. 2.6 b with the consolidation of full six months of Asian Alliance and the expansion drives in Asian Alliance, Softlogic Finance and Softlogic Stockbrokers. The heavy finance cost burden associated with the acquisition of Asian Alliance remains the primary concern for the sector. The group emphasis is to reduce the finance cost burden of the sector during the second half of the financial year.

The Healthcare Services sector performance was impressive with a PBT of Rs. 204 m. Resulting from the one-off foreign exchange loss, sector PBT dipped by 15% compared to corresponding quarter while the sector revenue increased by 17%. The premier healthcare provider continued to expand into new services with its new Fractional Flow Rate and Rotablator Rotational Atherectomy System which are the first in the country.

In addition the group installed a state of the art Urodynamics Laboratory adding on to its super specialisation in urology and thereby providing the most complete urologic services in the country.
The group is progressing with its restructuring plan for the sector with its new foreign partner Actis

Investment Holdings SL Ltd. Asiri Hospital Holdings PLC is expected to be the sector holding company for all hospitals within the group.

The elimination of cross holdings, increased stakes in subsidiary hospitals and reduction of debt is likely to boost the profitability from this sector. “The business environment in Sri Lanka posed significant challenges, but has witnessed a steady improvement. Despite the challenges in the short term, your company drives ahead with investments in key growth sectors of the economy and its continuous efforts to reduce the finance cost burden which would invariably lead towards an improved performance in the coming quarters,” Softlogic Chairman Pathirage said with regard to the future outlook.
http://www.ft.lk/2012/11/15/mixed-fortunes-for-softlogic-holdings/

http://sharemarket-srilanka.blogspot.co.uk/

sriranga

sriranga
Co-Admin
Maintains growth of 23.8%

Sampath Bank continued with the growth momentum in the first nine months of 2012, by posting impressive results in many key areas over the last year same period, amidst increasing interest rates and shifting of funds towards high cost financing due to the prevailing market conditions.

The bank’s pre-tax profit, which rose to Rs. 5,453.7 m in the first nine months of 2012, reflected an increase of Rs. 1,047.9 m or 23.8% over the pre-tax profit of Rs. 4,405.8 m for the first nine months of 2011. The post-tax profit of the bank recorded a growth of 23.5% over the same period of last year, rising from Rs. 3,060.5 m in 2011 to Rs. 3,778.6 m in 2012.

Sampath Bank Group
Pre-tax profit of the group, which consists of Sampath Bank and the four subsidiary companies amounted to Rs. 5,620.7 m for the first nine months in 2012, reflecting a growth of Rs. 950.3 m or 20.3%, over the pre-tax profit of Rs. 4,670.4 m for the corresponding period in 2011.

Sampath Bank, as the main entity of the Group, contributed the bulk (97.0%) of the profit. The post-tax profit of the Group amounted to Rs. 3,900.5 m, recording a growth of Rs. 615.2 m or 18.7%, over the post-tax profit of Rs. 3,285.3 m for the same period of the last year. The lower PAT growth rate of 18.7% at the group level was mainly due to the drop in profits of the stock brokering subsidiary, SC Securities Company, arising from the current situation in the Colombo stock market.

Contributory factors for the bank’s improved results were as follows:

Net Interest Income (NII)
NII, which is the main source of income from the fund based operations and representing over 50% of the total operating income, rose from Rs. 6,585.6 m in the first nine months 2011 to Rs. 8,358.3 m in the first nine months 2012, recording a significant growth of 26.9%.

This increase was achieved despite the Net Interest Margin (NIM), which stood at 4.17% in the first nine months of 2011 dropping to 4.10% in the first nine months of 2012, as a result of cost of funds increasing at a faster rate than the rise in average yield rates of both the customer advances and government securities held. Hence, this significant growth in NII was largely due to the high growth rates recorded by the bank in key business volumes, namely 29.7% in customer advances, 27.6% in total assets and 25.0% deposits during the one year period ended 30.09.2012.

Exchange income
The exchange income rose from Rs. 437 m in the first nine months of 2011 to Rs. 2,165.7 m in the first nine months of 2012, recording a growth of Rs. 1,728.7 m or 395.6%. This was facilitated mainly by the increase in the revaluation gains on the foreign currency reserves held in the bank’s FCBU, as a result of sharp depreciation of Rupee against the US Dollar in 2012 (from Rs. 113.9 as at 31 December 2011 to Rs. 129.48 as at 30 September 2012) and the substantial increase in the dealing room’s trading profits.

Other income
Other income of the bank, bulk of which is commission and fee-based income, too recorded a growth of Rs. 221.5 m or 10.7% in the first nine months 2012 over the same period in 2011 as a result of increased economic activity in the market and the rapid growth achieved by the bank in its lending activities.

The only source of other income, which recorded a negative growth (100%) in first nine months 2012 was capital gain on share trading, where the bank realised capital gain of Rs. 413.8 m and Rs. 364.57 m in 2011by selling part of scrip dividend received from Lanka Bangla Finance Ltd and by selling the Visa/Master shares held by the bank, which was received free of charge during first nine months 2011.

Operating expenses
Operating expenses of the bank which stood at Rs. 5,749.8 m in the first nine months 2011, rose to Rs. 6,815.1 m in the first nine months 2012, recording an increase of Rs. 1,065.3 m or 18.5%. This growth in operating expenses was largely due to the incremental cost incurred in connection with the opening of 28 new branches in the first nine months of 2011and the increase of the staff cadre, which too was due to the expansion drive.

The bank anticipates that the cost increase rate would be somewhat lower in years to come, in view of the moderation expected in the branch expansion program, given the fact that bank’s branch network has now adequately covered most of the potential locations of the country. Apart from that, effect of salary increment during the year and the inflation in the economy also resulted in increasing operating expenses over the previous year same period.

Loan loss provisions and provision cover
Though, the provision cover recorded a marginal decline and stood at 71.23 % at the end of the first nine months of 2012, due to the recoveries made against the underlining NPLs, the specific provision cover still remained at a high level compared to the industry average of 50.9% on 30 September 2012. Together with the general provisions, the total provision coverage ratio of the bank stood at 86.41 % as at 30 September 2012.

Similarly, NPL ratio too came down to 2.27% as at 30 September 2012 from 2.65% as at 31 December 2011. However, the regulatory general provision made against performing advances had to be increased due to significant credit growth recorded in the first nine months of 2012.

Investment provisions/reversals
A gain of Rs. 93.4 m arose in the first nine months of 2012, due to the reversal of previous mark to market losses, arising from the appreciation of market value in Treasury Bill portfolio held, which off-set the mark to market losses on the trading portfolio of shares. The previous year’s gain of Rs.72.1 m arose due to a reversal of an impairment provision of Rs. 275.9 m made against the share investment in the Union Bank.

Business growth
The growth rates in deposits and total assets during the first nine months of 2012 amounted to 17.3% and 18.2 % respectively and compared well with the industry’s growth rates of 12.8% and 15.6%, during the period. In addition, the growth rate in customer advances during the First Nine Months of 2012 amounted to 19.8%, as against the industry average of 16.6% during the period.

Non-Performing Advances
Though the NPL volumes marginally rose by Rs. 91.5 m in the first nine months 2012, the NPL ratio of the bank dropped to 2.27% as at 30 September 2012, from 2.65% as at 31.12.2011, which also compared well with the industry average of 4.0% as at 30 September 2012.

Key financial ratios
The improved profits paved the way for most of the key financial ratios of the bank to record significant improvements over the previous year.

Cost/income ratio
This ratio rose to a peak level of 59.15% in 2011, mainly due to the additional cost incurred in connection with the accelerated branch expansion program and recruitment of 867 new staff to support the business expansion. However, the ratio in the first nine months of 2012 dropped to 57.18% with the moderation in the branch expansion program and the significant increases in the NII and foreign exchange income.

ROA and ROE
Despite the marginal drop compared to the previous year, the above two ratios remained at healthy levels of 1.85% and 24.55% during the period under review.

Statutory liquid asset ratio
This ratio dropped from 24.95% as at 31 December 2011 to 21.32% as at 30 September 2012, mainly due to the rapid credit expansion. Though, the ratio was maintained at a reasonably high level over the minimum of 20%, it was not as high as the industry average of around 31%, due to the prudent trade-off maintained between liquid assets and earning assets.

Capital adequacy ratios
Sampath Bank also remained as one of the well capitalised Banks, with the Tier I capital adequacy ratio at 10.67% and total capital adequacy ratio at 11.65% at 30 September 2012, despite the higher credit growth of 19.8% recorded during the first nine months of 2012.

This was partly due to the bank’s success in managing the expansion of risk weighted value of assets. Further recognition of the audited profit of the second half of the year and the debenture issue of Rs. 1.5 b in October 2012 will further improve capital adequacy towards the year end.

Compliance with new Sri Lanka Accounting Standards
As per the ruling issued on 2 March 2012 by the Institute of Chartered Accountants of Sri Lanka on ‘Preparation of Financial Statements as per LKAS 34,’ the bank has published the quarterly financial statements for the first nine months of 2012 under Option 2, by presenting them in accordance with the Sri Lanka Accounting Standards (SLAS), which existed immediately prior to 1 January 2012, with disclosures on the impact on the statement of comprehensive income for the nine-month period under review and net assets (equity) as at 31 December 2011 and 30 September 2012 respectively.

Debenture issue
With the objective of strengthening the Tier II capital adequacy, Sampath Bank PLC issued 15,000,000 unsecured subordinated redeemable debentures at a par value of Rs. 100.The debenture issue was opened on 4 October 2012 and closed on 5 October 2012 as the issue was oversubscribed. These debentures are quoted in the Colombo Stock Exchange.

Accolades/external rating
The Bank’s Annual Report 2011 and Financial Data 2011 won a Bronze Award and a Gold Award under the Banks National category at the 26th ARC Award Ceremony held in New York.

In the 2012 rating assessment, considering the healthy asset quality, better compliance, transparency, capital adequacy, internal control systems and processes of the bank, RAM Ratings Lanka has reaffirmed AA (stable) rating for Sampath Bank, in its rating assessment. In the same year, the overall credit rating of the bank’s AA-lka (Stable) has been affirmed by Fitch Rating Lanka too.
http://www.ft.lk/2012/11/15/sampath-bank-records-rs-5-45-b-pre-tax-profit-in-q3-2012/

http://sharemarket-srilanka.blogspot.co.uk/

1314-Nov-2012 Interim financial statements 30-09-2012 Empty Sri Lanka Telecom net up 70-pct in Sept Thu Nov 15, 2012 1:24 am

sriranga

sriranga
Co-Admin
Nov 14, 2012 (LBO) - Sri Lanka Telecom group, which run the island's only wireline network and also has mobile and wireless fixed services said profits in the September 2012 quarter rose 70 percent to 1.8 billion rupees from a year earlier.

The group reported earnings of 1.0 rupee per share. For the nine months to September group earnings were 1.59 rupees per share on total profits of 2.86 billion rupees, down from 3.4 billion rupees a year earlier.

Group revenues rose 15 percent to 14.5 billion rupees in the September quarter and operating costs rose 20 percent to 9.88 billion rupees and the firm grew operating profits 8 percent to 4.69 billion rupees. Depreciation was flat at 2.8 billion rupees from a year earlier.

During the quarter the group made 441 million rupees of foreign exchange profits, which allowed it to reverse some earlier forex losses.

Sri Lanka's rupee fell in the first half of 2012, pressured by sterilized foreign exchange sales by the Central Bank. A depreciating currency inflates foreign exchange denominated loans, but also increases rupee revenues from international termination settlements.

Mobitel, the group's mobile unit has made a billion rupee after tax profit in the third quarter, SLT said in a statement.

"Consistent Growth in operating profits in 2012 demonstrates our strength, resilience and aligned growth strategy of our group of companies to deliver strong results," Chairman Nimal Welgama said in a statement.

He said the SLT will continue to invest in expansion.

Group cashflow statements showed investment of 10.2 billion rupees in new plant and equipment.
http://lbo.lk/fullstory.php?nid=1800916804

http://sharemarket-srilanka.blogspot.co.uk/

sriranga

sriranga
Co-Admin
Currently aiming to expand operations even further with a fresh infusion of capital

The Finance Company PLC said in a statement that it has seen an improvement in all business areas over the last quarter, despite the adverse situation prevalent in the market due to tight liquidity and the many challenges faced in the market environment.

Although the company could not achieve the planned growth due to certain external factors faced by the organisation, the confidence placed in the company by customers has ensured that TFC has kept abreast of the challenging market environment, sustaining its momentum.

The statement sans specific numbers said that the financial investment area of the business has recorded a growth of 15% over the last quarter. The pawning sector of the company has unfailingly proved its worth as an exceptional contributor to the firm’s revenues. The product recorded a growth of 21% in average stock over the same period, justifying the decision to open more pawning centers during this period.

The real estate division has seen good progress within this time period with an overall growth of 43% in sales. TFC, being the market leader in real estate, has the largest number of land blocks owned by a single company and is proud to have served more than 800,000 customers.

TFC owns a large stock of real estate comprising of housing and land of commercial value that is being disposed rapidly as a result of stabilised market conditions in the real estate sector, which will result in higher profitability for the company. High growth has once again been seen in the new deposit intake with a growth of 28% over the last quarter along with an increase of 9% in savings deposits.

A major factor that contributed to this upward trend has undoubtedly been the significance placed by the management on providing a better service to its loyal customers island-wide. Having started in early 2011, the aggressive branch expansion plans have resulted in a large number of The Finance branches growing in their roles to serve their communities more conveniently.

Quite recently, the Galle and Badulla branches were newly modernised and unveiled to the public in September whilst in October, the Kurunegala, Hatton and Kiribathgoda branches were moved to more convenient locations. Plans are underway to relocate the Piliyandala, Negombo, Thambuttegama and Welimada branches to more strategic locations. The dominating presence the firm has built over the years with its local communities has played a major part in the position of strength it enjoys today.

In addition to the backing of prominent state banking institutions such as People’s Bank, Bank of Ceylon and Seylan Bank as the key shareholders of the company, the financial regulator, the Central Bank of Sri Lanka, has also continued its patronage and support to its endeavours.

Currently, the company is looking towards expanding operations even further with a fresh infusion of capital and are in serious discussions with investors who are interested in partnering with TFC, the first registered finance firm in Sri Lanka, which will have a major impact on the future profitability of the company.

Projections have been done for the next five years to wipe off the negative net worth with the intended capital infusion in order to ensure profitable levels in its business operations. The company’s strategic plan is developed in line with the recommendations of an internationally reputed consultancy firm, whose insight would prove worthwhile in progressing the company to regain its position as the market leader with a strong balance sheet within a reasonable period of time.

To sign off an eventful year, the company will also launch the ‘TFC Advantage Card,’ to be presented to its fixed deposit customers, with an exciting range of benefits from a range of merchants in the areas of medical, textile, household and electrical items, footwear, restaurants, leisure, insurance and automobile etc to complement their lifestyles.

Furthermore, all ground work has been completed in order to launch a debit card for savings account holders, in partnership with a leading bank in December. Apart from the company’s key business areas, TFC has also ventured into education by starting an international school to help 750 children whose education was on the brink of disruption due to a legal issue arising from a non-payment of a loan by its previous management.

This is currently being run by a panel of eminent professionals from the field of education, comprising of a principal from a leading school in Colombo, a professor/former dean of a reputed university as well as individuals who are experts in primary and tertiary education. Their backing has ensured that the school is currently operational at the highest standard.

The Finance Company PLC, which is household name, has over 72 years of unmatched experience in the non-banking finance sector, serving the Sri Lankan public through a network of 60 branches spread island-wide.
http://www.ft.lk/2012/11/16/the-finance-company-looks-to-end-2012-on-a-high-note/

http://sharemarket-srilanka.blogspot.co.uk/

sriranga

sriranga
Co-Admin
Union Assurance PLC (UA), a leading player in the Sri Lankan insurance sector, consolidated its position by reporting steady growth in both turnover and profits for the nine months ended 30th September 2012. UA reported a year on year growth rate of 15% in combined gross written premium and profit after tax.

"Combined gross written premium increased from Rs. 6 billion for the first nine months of 2011 to Rs.6.9 billion for the nine months ended 30th September 2012. Life insurance gross written premium recorded a growth of 17% from Rs. 3.2 billion as at September 2011 to Rs. 3.7 billion as at September 2012. General insurance gross written premium recorded a 13% growth from Rs. 2.8 billion in 2011 to Rs.3.1 billion in 2012. Growth was reported from both corporate and retail customer segments, and all classes of general insurance business reported a year on year growth.

Profit after tax of Rs.223 million, was an increase of 15% from Rs. 194 million reported in September 2011. The profit excludes the surplus from life insurance business which is determined after an actuarial valuation which is conducted at the end of the year," the insurer said in a statement.

As at end of 30th September 2012, the life fund stands at Rs.16.4 billion including the unit linked fund and is one of the largest life funds in the industry.

Dirk Pereira Chief Executive Officer of UA said, "We are pleased with the progress we are making in achieving our twin objectives of growing both turnover and profits of the business. Given the current dynamics in the insurance market, we retain a positive outlook with regard to the company's prospects in the short to medium term."

The financial statements for the period ended 30 September 2012 have been prepared and presented in accordance with Sri Lanka Accounting Standards (SLFRS / LKASs) which have converged with the International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB).
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=66167

http://sharemarket-srilanka.blogspot.co.uk/

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
The Richard Pieris Group ended its first half year’s performance with steady group operating profits compared to the corresponding period of the previous year. The six months ended 30 September 2012 evidenced a positive performance in all its major sectors with the reported turnover surpassing Rs. 16 b which is yet another remarkable achievement.

Retail Sector: During the second quarter the sector opened its 15th large format retail outlet in the town of Piliyandala. The performance of the over 16,000 square foot store in Piliyandala during its infancy months has been very encouraging.

The retail sector continued with its vibrant marketing activities during the second quarter of the financial year 2012 2013 by having its very popular ‘Arpico Privilege Family Beach’ campaign and several other activities.

However, the company continued to see the effects on consumer confidence as a result of the depreciation of the currency, the increase in energy and fuel prices, etc., and as a result the company continued focusing heavily on managing overheads and inventory during the relevant quarter

Plastics and Distribution Sector: During the quarter the sector introduced a single layer mattress addressing the needs of the ‘value seekers’ segment of the market and carried out several dealer appreciation and recognition programs. The sector took part in the premier construction exhibition ‘Construct Expo 2012’ and was awarded the best stall.

Plantation Sector: Whilst the tea prices continued to increase, the decline in rubber prices affected the turnover of the Plantation Sector of the Group. Overall production in all major crops decreased in comparison to the similar period last year due to harsh weather conditions in terms of both drought and rain simultaneously affecting plucking and tapping in all plantation regions during this period.

Tyre Sector: During the period under review the Tyre Company introduced two new brands of passenger car tyres to the market, namely ‘Xceed’ and ‘Nexen’. The latter is considered as the most up and coming brand in South Korea and is expected to perform well in Sri Lanka.

Rubber Manufacturing Sector: The Sector continued on the success achieved during the first quarter with both Richard Pieris Exports PLC and Richard Pieris Natural Foams performing exceedingly well. The influx of new management and results of various cost improvement and quality initiatives are now being reflected in
the financial performance of the sector

The Group continues to capitalise on its solid business base and the key sectors of Retail, Tyre, Plantations, and Plastics are expected to further improve performance over the second half of the financial year.

The aggressive expansion of the retail sector is expected to continue and the Group’s insurance business which was established in January earlier this year is expanding its branch network and business base. A spokesman for the company stated that the outlook for the rest of the financial year is very positive.
http://www.ft.lk/2012/11/17/richard-pieris-records-turnover-growth-of-12-2/

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