Sarvodaya Development Finance records impressive 1Q

Wednesday, 24 August 2022 00:00 - - {{hitsCtrl.values.hits}}

Staying true to its vision of developing rural economies, Sarvodaya Development Finance PLC (SDF) has continued to outperform during the first quarter of this financial year.

Chairman Channa de Silva

CEO Nilantha Jayanetti

Reflecting public confidence in the company, SDF’s deposit base grew by 10.1% from end March 2022, to end June 2022. The total assets of the company recorded a marginal growth despite all social, political and economic challenges experienced in the country recently.

SDF’s total income for the quarter ended 30 June 2022, was Rs. 559.84 million, which is a growth of 40.9% compared to the income of Rs. 397.34 million for the comparative period of FY 2021-22. The net operating income for the quarter increased by 22.6% to Rs. 288.82 million, from Rs. 235.65 million in the previous comparative quarter.

The operating profit before tax on financial services increased by 55.8% to Rs. 74.62 million, against the comparative figure of Rs. 47.90 million one year ago. The profit before tax increased by 59.8% to Rs. 45.30 million as compared to Rs. 28.36 million in the previous year’s first quarter. SDF concluded the 1st quarter of FY 2022-23 with an after-tax profit growth of 115.0% reaching Rs. 33.83 million, as compared to Rs. 15.73 million achieved in the first quarter of FY 2021-22.

SDF expanded its agricultural lending portfolio and farming related support services, thereby actively facilitating recovery of the country’s essential agriculture sector. Through its strategic agreements with leading agricultural equipment and machinery suppliers, SDF modernises rural farmers with modern agricultural equipment, such as combined harvesters, tractors, automated rice mills and other equipment to enhance agricultural outputs, supported by buy back agreements as a risk mitigation mechanism.

Meanwhile, seasonal repayment plans have been developed for farmers to alleviate repayment pressure on farming communities, enabling them to repay their loans with the increase in income during harvest seasons.

In a unique intervention, SDF also supplies its farming customers with liquid organic fertiliser (Effective Micro-organism), which is manufactured by the Sarvodaya Movement based on a patented Japanese formula. As a further support measure, SDF also negotiates forward buying contracts for farm produce, to ensure farmers are able to sell their products immediately at fair prices.

SDF will continue to remain vigilant of the country’s economic situation while continuing to support economic recovery by strengthening the community-based societies, small and medium entrepreneurs in the country by channelling vital funds for business continuity and growth.