Sinhaputhra Finance profits increase fourfold

The company has recorded a 246 percent net growth in profitability despite doubling its additional provisions from Rs 41 million in FYE 2010 to Rs 91 million in FYE 2011.

Provisions which is considered an accounting write-off from profits on an assumption of non recoverability, is in fact a conservative and cautious view, restraining financial institutions of over stating profitability, Finance Director Nandana Abeykoon, stated that whilst such a provision for debts directly reduces profitability by the stated Rs 91 million, it shows a conservative view and any recoveries from those provisions would impact profit directly in the ensuing years.

The company was also able to improve its dividend payout ratio by 100% whilst transferring to reserves 246 percent more than the previous year to build its capital base to Rs 469 million.

Effectively this brings Sinhaputhra above target of the minimum capital requirement of Rs 300 million as at December 31, 2011.

With over Rs 396 million paid as interest, the company enriches the public investors and banks at an average of Rs 33 million a month. With its attractive rates of interest on Fixed Deposits and Savings, 33 years of financial stability, and conservative and calculated growth strategies is facing FYE 2012 with even greater optimism was the view expressed by Director Operations Saliya De Alwis.