People’s Merchant records Rs. 133.7 m net profit in 1Q

People’s Merchant PLC made an after tax profit of Rs. 133.7 mn   for the quarter ended 30.06.2011. This is against a loss of Rs.212.9 mn recorded for the quarter ended 31.03.2011. 

The profit was recorded mainly through income generated from disposal of the subsidiary, People’s Merchant Finance Company Ltd.

The company had a 100% increase in income of Rs. 270 mn as against Rs.136 mn reported in the previous year’s corresponding quarter. The company was able to reduce the reserve losses of Rs.180 mn to Rs.46 mn by the end of the quarter.

The total equity of the company increased to Rs. 604 mn which is a 28% increase, compared to the position as at 31.03.2011. The company was also able to reduce the total borrowings by Rs.580 mn during the quarter. 

People’s Merchant PLC provides a range of financial services including leasing, hire purchase, trade finance, corporate finance, real estate and gold loans through its corporate office and a network of 10 branches.