Orient Finance reports robust 89% growth in profits

Friday, 3 August 2012 00:01 - - {{hitsCtrl.values.hits}}

Orient Finance PLC recorded the highest ever profit after tax since its inception in 2003. The company posted profit after tax of Rs. 136.5 million for the year ending 31 March 2012, as against the previous year’s profit after tax of Rs. 71 million.

Commenting on the company’s financial performance, Chairman Dr. Dayanath Jayasuriya, PC, said; “Orient has had an exceptional year, characterised by robust growth in its leasing and hire purchase portfolio and recorded an impressive after tax profit of Rs. 136.5 million.”

The total assets of the company recorded a remarkable growth of 97%. The main contributory factor to the expansion in the asset base is the growth in the leasing hire purchase and factoring portfolio which grew by 108.4% from the previous year.

The stated capital of the company was increased to Rs. 500 million at the end of 31 March 2012 through a rights issue amounting to Rs. 222.5 million. Both core capital and total capital were at 25% and 26% respectively, being well above the stipulated statutory requirements.

During the year the company opened three window offices in Vavuniya, Galle and Kegalle further increasing the reach to its customers.

The conducive business environment which prevailed throughout the year, with the economy recording the highest post independence growth, complemented by the opening of geographical boundaries of north and east, single digit inflation, and the increase in per capita income, had a positive impact on the outstanding performance of Orient Finance.

Gaining confidence with the exceptional financial performance, Orient Finance continues its growth momentum in the leasing industry with new found vigour, continuing achievement of milestones, which includes obtaining a listing on the Colombo Stock Exchange and a license to carry out finance business under the Finance Business Act No. 42 of 2011.

The company is to embark on a re-branding initiative shortly in keeping with the proposed business strategy.

The Board of Directors of the company consists of Dr. Dayanath Jayasuriya, PC, as Chairman, and Prakash Schaffter, Ramesh Schaffter, Ananda Atukorala, Lakshmi Gunetilleke, Anil Tittawela, PC, and Sarath Wickramanayake as Directors. Rajeeva Bandaranaike functions as the Chief Executive Officer.

Orient Finance PLC is a subsidiary of Orient Capital Limited (OCL), which is a 100% equity financed company with diverse capital market services to individual and corporate clients with a highly experienced Board of Directors and senior management. Orient Wealth Limited and First Alliance Money Brokers Limited (FAMB) also come under the OCL umbrella.