Asia Capital enjoys 1000% rise in 9 months post-tax profit of Rs. 726.2 m

Asia Capital has continued with its strong recovery with Group’s nine months profit after-tax increasing by 1049% to Rs. 726.2 million from Rs. 63 million in the corresponding period of 2009/10 financial year.

Net profit attributable to equity holders of Asia Capital amounted to Rs. 636.8 million, up 924% from Rs. 62.2 million a year earlier.

This emphatic performance has enabled Asia Capital, now 88% controlled by Malaysia-based business leader Vijayeswaran S. Vijayaratnam; reduce retained losses to Rs. 293.7 million, from Rs. 871.5 million a year ago.

Impressive growth in bottom line had been possible thanks to 97% rise in Group revenue which amounted to Rs. 1.8 billion as against Rs. 916.4 million in the first nine months of 2009/10. Gross profit rose by 101% to Rs. 897 million whilst profit from operations rose by 635% from Rs. 116.4 million to Rs. 856.3 million in the first nine months ended on 31 December, 2010. A profit of Rs. 123.8 million on account of disposal of subsidiary shares (Capital Reach Holdings for Rs. 299.5million) in August 2010 had boosted the bottom line as well. Pre-tax profit rose by 602% to Rs. 872.5 million.

In the third quarter, Group revenue had increased by 144% to Rs. 667.2 million whilst gross profit rose by 99% to Rs. 273 million. Profit before tax amounted to Rs. 364.8 million up by 1,987% and post-tax profit in the third quarter was Rs. 336.8 million, up by 2,969% from a loss of Rs. 11.7 million in the corresponding quarter of last financial year. Net profit attributable to equity holders was Rs. 275.7 million, in comparison to a loss of Rs. 16.6 million a year earlier.

The first nine months also saw Asia Capital in August 2010 acquiring 6,000,000 shares of Asian Alliance Insurance Co Plc (Associate Company) for Rs.343.75 million and Asian Alliance Insurance Co Plc became a subsidiary as of that date. On 23 August Asia Capital Plc has acquired further 1,298,800 shares of Asian Alliance Insurance Co Plc for Rs.74 million.  Accounting Asian Alliance as a subsidiary has been a further boost to Asia Capital performance.

Asia Capital’s investments operations had generated a Rs. 140 million after tax profit, up from Rs. 65 million in the first nine months of 2009/10. Stock broking and investment banking produced a profit of Rs. 228.5 million, higher in comparison to Rs. 60 million a year earlier. Profit from deposit mobilisation and credit rose to Rs. 86.8 million as against a loss of Rs. 26 million. Profit after tax from insurance business was Rs. 270.8 million, as against a loss of Rs. 35.6 million in the first nine months of last financial year.

As at 31 December, 2010, Asia Capital Group assets topped the Rs. 8 billion mark to Rs. 8.09 billion, up from Rs. 5.58 billion one year ago and Rs. 5.7 billion as at 31 March, 2010.  Total liabilities rose from Rs. 5 billion to Rs. 7 billion.

The Board of Directors of Asia Capital Plc comprises Mano Nanayakkara (Chairman and Managing Director), Paul Ratnayake (Deputy Chairman),  F.X.R. Pereira, A.D. Ross, Priyanthi Pieris (alternate to M. Nanayakkara), D. Muthukumarana and V. Siva Jr.