Overseas Realty first quarter Group profit up 46%

Wednesday, 7 May 2014 00:00 - - {{hitsCtrl.values.hits}}

A strong improvement in revenue supported by apartment sales helped bolster net profit for Overseas Realty Group. The consolidated revenue for the first quarter rose by 89% year-on-year to Rs. 1,710 m with rental income rising by 23% to Rs. 423 m, sale of apartments rising by 130% to Rs. 1.250 m and other services rising by 98% to Rs. 30 m. However, gross profit margin dropped as a result of the change in revenue mix. Tighter control of overhead costs helped boost Profit After Tax (PAT) to Rs. 793 m, which is an increase of 46%.

At Company level, revenue from rentals rose by 23% to Rs. 423 m due to higher occupancy and average rentals, with other services contributing Rs. 23 m, an increase of 34% resulting in a total revenue of Rs. 447 m. Maintaining direct expenses in check at Rs. 106 m allowed the gross margin to rise to 76%. The PAT at company level rose to Rs. 607 m, a rise of 26% for the quarter. The overhead costs were lower than the previous year’s quarter whilst finances were better managed to record a net finance income of Rs. 64 m. The Group net asset value per share increased marginally by 3% to Rs. 29.51 YoY. The Group cash position improved during the quarter to Rs. 3,269 m from Rs. 2,914 m. A total dividend of Rs. 1.45 per share was declared for the financial year ended 31 December 2013, to reward shareholders for their patience and confidence during the past several years.