Singer Finance’s net profit grows by 106% in 4Q

Singer Finance has announced impressive financial results for 4Q FY 2011/2012, recording a net profit of Rs. 46 million, which is a growth of 106% over the same quarter of prior year in the midst of a challenging business environment during the latter part of the 4th Quarter of FY 2011/2012.

The company’s income increased by 47% in the fourth quarter, from Rs. 245.3 m to Rs. 360.2 m. The income for the year ended March 2012 increased by 30% from Rs. 970.6 to Rs 1,263.3 m. Profit for the full year increased by 79%, from Rs. 112 million to Rs. 201 million.

The company’s numbers were buoyed by an increase in the leasing and hire purchase portfolio, which accounted for 61% of revenue for the last quarter and 58% of revenue for the year ended 31 March 2012. The costs in relation to revenue, demonstrated by an operating costs-to-income ratio of 42% were down from 44% for both the last year same quarter and year on year.

Further augmenting the numbers were the company’s low Non-Performing Loans (NPL) Ratio, which stood at 0.47% during the FY 2011/2012. The NPLs are among the lowest in the industry.

The risk weighted capital ratio of 17.36% too is well above the minimum regulatory requirement of 10%.  

Singer Finance has zero exposure to shares and the stock market and is totally unaffected by the decline in share prices experienced currently.

Singer finance (Lanka) PLC was listed on main board of Colombo Stock Exchange and currently 24.94% of shares are held by the public.

Singer Finance (Lanka) Plc, a subsidiary of Singer (Sri Lanka) Plc, was incorporated on 19 April 2004 to carry out finance business within the provisions of the Finance Companies Act No. 78 of 1988 as amended by Act No. 23 of 1991 and subsequently replaced by Finance Business Act No. 42 of 2011.

SFLP obtained the License from Central Bank of Sri Lanka to carry out finance leasing business and licensed as a registered ‘Finance Company’ in terms of Section 2 of the Finance Companies Act No. 78 of 1988. The company’s asset base currently exceeds Rs. 6 billion.