Sri Lanka’s LOLC Holdings Sept net dented by leisure, manufacturing losses
ECONOMYNEXT – Profits at Sri Lanka’s LOLC Holdings fell 29 percent from a year earlier to 1.3 billion rupees in the September 2018 quarter, with losses from leisure and manufacturing segments weighing down gains from financial services, interim accounts showed.
The group reported earnings of 2.77 rupees a share in the quarter. In the six months to end September, earning were 9.20 rupees a share on a profit of 7.5 billion rupees, down 7 percent from a year earlier.
The stock closed 2 rupees higher at 90 rupees on Thursday.
In the quarter, net interest income LOLC Holdings’ primary finance and leasing business rose 28 percent from a year earlier to 25.9 billion rupees as interest income grew 21 percent to 58.6 billion rupees and interest expenses declined 16 percent to 32.7 billion rupees.
Revenue from other businesses in the group including hotels, manufacturing and trading, insurance and plantations increased 1 percent to 10.7 billion rupees as cost of sales increased a faster 11 percent to 7.5 billion rupees which contracted gross profits by 18 percent to 3.2 billion rupees.
Other income rose 24 percent to 8 billion rupees.
Personnel costs rose 12 percent to 10 billion rupees.
Bad loans provisioning rose 55 percent to 5.8 billion rupees.
The group’ loan book expanded 29 percent from a year earlier to 559.4 billion rupees at end September while the deposit base increased 39 percent to 377.2 billion rupees during the period.
Borrowings of the group rose 14.4 percent to 377.2 billion rupees.
In segment results, earnings from financial services segment rose 14 percent from a year earlier to 5.7 billion rupees in the September quarter.
Insurance fell 26 percent to 87.7 million rupees.
Losses from the leisure and entertainment segment widened 69 percent to 606.2 million rupees.
Manufacturing and trading businesses of the LOLC group reported a loss of 527.4 million rupees in the quarter, down from a profit of 6.3 million rupees a year earlier.
Plantations and power generation reported segment losses of 70.4 million rupees, increasing from a 27.7 million loss a year earlier. (COLOMBO, 16 November 2018)