LOLC posts Rs 6.7 b profit

LOLC continued its positive stride in profit growth recording strong bottom line results as at September 2011 with Rs. 7.5 bn as PBT and Rs. 6.7 bn as PAT.

Ishara Nanayakkara

The profits before tax records a growth of 66% and the resultant profits after tax records a gain of 75% over the previous year. In 2009, the LOLC Group repositioned its business model in line with potential growth areas of the economy. LOLC continued expanding its core business of financial services comprising Leasing, Hire Purchases, Loans, Factoring and Working Capital, Micro Financing, Islamic Financing, Savings, Deposits in Local and Foreign currency, Insurance in General and Life, Stock Broking and selected strategic investments in the banking sector including Seylan and HDFC.

The Group successfully established a fully-fledged motor vehicle restoration center - LOLC Motors, as a value addition to its fleet management and insurance businesses. LOLC Motors recently acquired the dealership for Fiat in Sri Lanka.

In line with the Group’s diversification strategy, LOLC ventured into the Leisure sector with the acquisition of four hotels of which three are under refurbishment and when fully operational, will be the single largest hotel complex in the country.

LOLC is in the process of finalizing the management agreement with one of the largest hotel operators in the world to manage this complex.

With the investments made in the construction sector through the Sierra Group, Trading and Manufacturing through the Browns Group and Asia Siyaka, Agriculture and Plantation through Maturata, Pussellawa, Gal-Oya and Agstar Fertilizers and the overall investment strategies in the renewable energy sector through United Dendro and Hydro Power Free Lanka, LOLC is well poised as a conglomerate that capitalizes the opportunities presented by the positive economic outlook.

LOLC’s financial services subsidiaries, Lanka ORIX Finance PLC (LOFC), LOLC Micro Credit Ltd (LOMC) and Commercial Leasing Co. Ltd. (CLC), drove the business to record a 39% growth in income over the previous year. Income earned on the lending and other related businesses was 8bn for the six months.

The trading sector recorded steady growth with a profit contribution of Rs. 481 mn, a 29% growth over the previous year.