Sri Lanka's LOLC net sharply up on one off gains
Jun 01, 2017 08:40 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Profits at Sri Lanka's Lanka Orix Leasing Company Plc, which has interests in finance, leisure, and farming rose 320 percent to 9.63 billion rupees in the March 2017 quarter on one of gains.
The group said it booked 10.3 billion rupees on acquisitions and divestments.
The group reported a gain after gaining a controlling stake in Prasaco, a non-bank lender in Cambodia at higher price and revaluing its existing stake carried in the books upwards.
The group reported earnings of 20.27 rupees per share for the quarter. In the year to March it reported earnings of 36.11 rupees on total profits of 20.9 billion rupees, up 124 percent.
The group's interest income in the finance sector rose 41 percent to 15.6 billion rupees and interest expenses rose at a faster 76 percent to 11.4 billion rupees, making net interest income fall 9 percent to 4.2 billion rupees.
Revenues in other businesses rose 19 percent to 6.69 billion rupees, cost of sales rose at a faster 30 percent to 3.7 billion rupees and the firm also grew gross profits 8 percent to 2.99 billion rupees.
Other income also rose to 5.5 billion rupees from 1.4 billion rupees.
In March 2017, the group bought a 47.75 percent stake in PRSAC Microfinance Limited of Cambodia for a value of 186 million dollars through LOLC International Private Limited, a fully owned unit based in Singapore. The deal raised its stake from 22.25 percent to 70 percent.
The fair value of net assets were 27.8 billion rupees, but based on the transaction valued at 40.3 billion rupees, 10.4 billion in goodwill was recognized.
For the existing stake a gain of 6.2 billion rupees was recognized. The firm had also sold 45 percent of FLMC Plantations for 4.6 billion rupees.
Browns Investment Plc, a subsidiary, and Zhongtian Ding Hui (Pvt) Ltd, plans to invest 70 million dollars to develop a property at 338, T B Jaya Mawatha, in Sri Lanka's capital Colombo, through Excel Global Holdings (Pvt) Ltd . The land lease is held by a firm called Millenium Development (Pvt) Ltd.
Browns Investments will inject 15 million dollars to the Excel Global Holdings and retain a 51 percent stake. Zhongtian Ding Hui will inject 35 million dollars and get a 49 percent stake. Excel Global will borrow another 20 million dollars.
Excell Global will build a 'life style shopping mall cum family leisure center'.