People’s Merchant dips in 2Q; six month profits up

People’s Merchant Plc Group income fell 23% to Rs.126 million in the September quarter though income for the six months ending September 2011 grew 27% to Rs.403 million.

Net Interest Income in the quarter dipped 12% over the same period last year to Rs.39 million as Net Interest Income for the six months grew 5% to Rs.83 million. Other Income increased 426% to Rs.146 million in the six months.

Profits for the six month period grew 809% to Rs.140 million from a loss of Rs.19.8 million in the same period last year. Profits in the quarter fell 314% to Rs.5.8 million.

Personnel expenses grew 11% to Rs.40.8 million in the six months as the provision for bad and doubtful debts reduced 143% with a write back of Rs.8.6 million. Earnings Per Share was Rs.7.50 while the net Asset Value was Rs.15.98.

The company is strongly positioned to move forward, taking advantage of numerous opportunities that are available within a unified and peaceful Sri Lanka, Ajith Panditharatne the Chairman - People’s Merchant Plc said in his annual review in August 2011. “The leasing industry is positive about future gains and heading towards a rapid growth due to the post war resurgence in Sri Lanka and the opening of the North and East for commercial purposes. The Government on its part has granted capital allowances on equipment for leasing companies as a budgetary concession for the industry .The grant will be effective from 1 April 2011 which will enable leasing of equipment with a depreciation of 33% over three years as against 12.5% over eight years” he said. Undoubtedly People’s Merchant will stand to gain, he added.

People’s Merchant shares closed at Rs.16 when 95,900 shares traded on Tuesday. Its main shareholders are People’s Bank with a 26.13% holding and People’s Leasing which holds 13.07% of its share capital.