Friday Nov 15, 2024
Friday Nov 15, 2024
Thursday, 22 September 2011 00:00 - - {{hitsCtrl.values.hits}}
Recently listed on the Diri Savi Board of CSE, Multi Finance PLC (MFL) recorded a staggering 334% increase in its Profits After Tax (PAT) for the financial year ending 31 March 2011.
The company achieved its impressive results during a period where the Registered Finance Companies (RFCs) sector experienced stresses and liquidity constraints due to loss of investor confidence, mainly due to collapsed regulated financial institutions.
Though the financial indicators of the sector weakened, the RFCs contributed significantly to the overall growth of the economy since first half of 2010 and also lead to a more transparent era of business activities.
In aligning with the stipulated Central Bank of Sri Lanka imposed regulations, Multi Finance got listed on the CSE by way of an introductory offer. A favourite pick amongst the stock market investors, the share price recorded a high of Rs. 77.50 per share, with the lowest price being Rs. 250 per share.
Multi Finance, which is a subsidiary of Entrust Limited, was incorporated in 1974 and was acquired by the Entrust group in March 2008.
Headquartered in Kandy, the company has spread out its business activities in key towns such as Colombo, Gampaha, Kurunegala and Matara whilst it is on a progressive mission to open more branches in the months to come.
The company weathered a year full of challenges and posted financial results which exceeded the budgeted figures. Total gross income moved up from Rs. 80.6 m to Rs. 159.5 m in 2011, recording a massive growth of 98%. It was an exceptional year for the company, underscored by an increased emphasis on portfolio quality as opposed to a focus on volume growth.
Group Executive Director/CEO A.H.M. Riyaz commented: “We are proud that the company’s NPL ratio remained at below 2%, which is the lowest in the market for the year under review.”
During the financial year under review, the company’s Profit Before Tax (PBT) grew from Rs. 8.1 m to Rs. 41.9 m, marking a staggering 417% growth, which has given impetus for overall positive growth in the company’s future business activities.
With Entrust Group taking over MFL and reshaping its business operations, the company was able to shift its focus from consumer durable business to being a fully-fledged RFC, offering products such as leasing, hire purchases, fixed deposits, savings accounts, pawning and other loans.
Spearheaded by newly-appointed Chairman Kuvera de Zoysa and Deputy Chairman Mohan Ratnayake, the management is confident that Multi Finance is progressively fast tracking its profitability through sustainable growth strategy.
The company will strategically expand its branch network, whilst simultaneously exploring synergistic diversification opportunities in new products and services, within the purview of Central Bank rules and regulations.
