|
|
 |
 |
 |
| Thursday, 10 June 2004 |
 |
|
 |
Business | |
| News Business Features Editorial Security Politics World Letters Sports Obituaries
|
Asia Capital posts Rs. 229.6m net profit from Rs. 26 m loss Asia Capital Limited posted a record net profit of Rs. 229.6 million in the financial year ended March 31, 2004. This is in marked contrast to the loss of Rs. 26 million recorded in the previous year. Strong performance of the financial services sector led by record earnings in stock broking operations and boosted by equity capital gains have been the main contributors to this impressive performance. Asia Capital's consolidated revenue has increased by 67 per cent year-on-year to Rs. 2,586.4 million, on higher income in equity broking, the apparel manufacturing sector and also on disposal of strategic investments. The strong top line growth has also driven Gross Profit up by 91 per cent year-on-year to Rs. 447.2 million, whilst consolidated Operating Profit has reached Rs. 267.9 million as opposed to the loss recorded in the previous year. Finance costs have been contained by judicious treasury management, aided also by lower interest rates. Although the disposal of a significant stake in Richard Peiris and Company Limited has resulted in the investment ceasing to be classified as an associate, thus precluding the equity accounting of a part of its profits, consolidated pre-tax profit has reached Rs. 252.1 million, a near one hundred fold increase. Consequently, net profit has risen to Rs. 229.6 million. The strong growth in Asia Capital's profitability is attributed to robust performance at Asia Securities (Private) Limited, its equity brokerage house which has retained its position as a premier stock broker in the country, capital gains on the judicious realignment of its investment portfolio and higher investment banking fee income. Asia Securities in particular has performed well ahead of the industry recording all-time high earnings. Asia Capital's expertise in capital markets has also been instrumental in the company being able to generate substantial capital gains by astute exit from strategic investments, most notably a stake in Richard Peiris and Company Limited. Asia Capital still retains substantial stake of Richard Peiris at a cost of Rs. 38.41 per share. The Financial Services Sector thus recorded an Operating Profit of Rs. 431.4 million. In addition, Asian Alliance Insurance Company Limited has also performed ahead of the previous year while considerable growth has been witnessed in Asia Siyaka Commodities (Pvt) Limited, the tea broking associate. However, restructuring costs in the apparel-manufacturing sector has resulted in losses at Asia Couture Limited. The apparel manufacturing sector has now been re-positioned and is benefiting from rising demand from key markets and is set to turnaround in the year ahead. The Board of Directors consists of Dr. Sena Yaddehige (Chairman), Harsha Amarasekara (Deputy Chairman), Asanga Seneviratne (Chief Executive Officers), Paul Ratnayake, J.M. Swaminathan, Anthony Ratnayake and Manohan Nanayakkara. |
|
News | Business | Features
| Editorial | Security
Produced by Lake House |
