Kshatriya transforms into Dunamis Capital after profitable '09-10
A period of strategic business rationalization has turned around the
fortunes of Kshatriya Holdings in 2009-10, prompting the diversified
business group to begin the new fiscal year as Dunamis Capital PLC, a
name that embodies the 'power within' the restructured entity.
Shareholders of the Group, which includes First Capital Holdings PLC
and Kotmale Holdings PLC, recently endorsed the adoption of the new name
in acknowledgement of the dynamism and growth envisaged following the
internal initiatives to re-focus on strong and profitable core
businesses.
Figures filed with the Colombo Stock Exchange this week attest to the
success of the strategy, with Dunamis Capital converting a loss of Rs
394.5 million in 2008-09 to a profit after tax of Rs 368.7 million for
the year ending March 31, 2010.
Consolidated profit before tax was Rs 883.9 million, as against a
pre-tax loss of Rs 187 million reported the previous year, while
turnover grew 38 percent to Rs 3.78 billion. Equity holders of the
parent company who were handed a loss of Rs 454 million a year ago
received an attributable profit of Rs 127 million in the year under
review.
The Group's earnings per share totalled Rs 1.29 as at March 31, 2010,
in contrast to a negative Rs 4.61 in the previous year.
Principal contributors to revenue were Financial Services (the First
Capital Group) and Dairy (Kotmale Holdings) with Rs 2.68 billion and Rs
1 billion respectively.
These two sectors also contributed Rs 505 million and Rs 45.4 million
to profit after tax.
Group Managing Director Manjula Mathews said a series of hard
decisions, to dispose of unprofitable businesses, stem the flow of
losses, reduce staff and sell assets, combined with strategic
investments in the profitable areas of business were largely responsible
for the turnaround.
Over the past two years, the Group disposed of its interests in
retailing (Magna Supermarkets) and apparel (garment washing plants in
India and Sri Lanka) reduced its debts, pruned overheads, reduced staff
and made capital investments to strengthen its companies in financial
services and dairy, equipping and positioning them for growth in
competitive environments. |