ETI profit grows by 300% in FY 2010/2011

ETIs basic fundamental statistics for the financial year 2010/11 has testified the company’s strong growth momentum. ETI has recorded an unprecedented Profit After Tax (PAT) figure of Rs 255.8 million in the financial year 2010/11 which is a 299.7 percent growth as against Rs 64 million in the corresponding period of last year. Profit before tax has increased by 205 percent from Rs 111.8 million to Rs 341 million. The pawning sector which is the core business of ETI has been the main contributor towards this significant growth.

ETIs total turnover has risen from Rs 2.1 billion in 2009/10 to Rs 2.5 billion in 2010/11 showing an increase percentage of 15.75.

The total assets in 2010/11 have shown a figure of Rs 14.5 billion, as against Rs 11.9 billion in the corresponding period of last year, with a 21.71 percent increase. The NPL ratio has been halved to 1.23 from 2.22 in 2009/10 thus the gross NPL figure has been brought down to Rs 92.2 million from Rs 117.2 million, showing tremendous growth in the quality of earning assets. Gross advances figure shot up to Rs 7.5 billion from Rs 5.2 billion last year. The quality of loans in ETIs loan portfolio has been managed well to reduce NPL ratio.

Careful monitoring and constant updating of MIS to implement proper investment plans has paved way for ETI to achieve these heights, said ETI CEO Mahendra de Silva. The main business line pawning has shown tremendous growth with general quality improvement in collateral offer. Thus ETI continues to maintain its position as the market leader in the pawning business in private sector, he said.