Softlogic boosts 1Q bottom line by 22% to Rs. 225 m

Monday, 18 August 2014 00:25 - - {{hitsCtrl.values.hits}}

Softlogic Holdings Plc’s Group profit before tax has improved 36% to Rs. 294.9 million in the first quarter FY15 in comparison to a year ago. Profit for the period during the first three months of FY2014/15 amounted rose by a 22% to Rs. 225.million. Consolidated revenue increased 14.6% to Rs. 8.0 b with strong performance reported across all business segments.

Healthcare Services maintained its leading contributory position followed by Retail, Financial Services, ICT and Automobiles. This uptrend is expected to bolster further in the upcoming quarters with fresh revenue generation from its recently-opened Centara Ceysands Resorts & Spa. The peak season for the leisure sector, which is November to March, has now been added to its normal peak calendar: Retail (April and December) and Insurance (December and March). Consolidated gross profit increased 14.4% to reach Rs. 2.5 b during the first three months of the financial year. Finance income, which registered an exceptional 103% growth to Rs. 422.6 m (Rs. 208.2 m in 1QFY14) during the three months period under discussion, was primarily triggered by investment portfolio gains, both fixed and equity investments at Asian Alliance Insurance PLC. Nonetheless, finance expenses declined marginally to Rs. 625.6 m as opposed to Rs.677.8 m in the comparative period. This was in light of the favourable macro-economic conditions where interest rates continued to decline allowing the absorption of the rapid capex growth of the Group. Softlogic Chairman Ashok Pathirage commenting on the outlook for the rest of the year said: “While we are doing everything commercially right to ensure success of your company, it is also important to make forward thinking decisions with a view to ensure greater upside in the medium term. With the interest regime looking benign we will make opportunistic decisions to take this group to a new level of competency and become unrivalled in certain key areas of business activities.” See Chairman’s Review on Page 4.