People's Leasing posts Rs 2.4 b PAT

Sanjeevi Jayasuriya

People's Leasing Company Limited, has been successful in maintaining the upward trend in profitability for the first half ended September this year. People's Leasing Company CEO D.P. Kumarage speaking to Daily News Business said the profit after tax for the first half was Rs 2.444 billion, an increase of 211 percent against the same period previous year of Rs 784 million.

The Q2 PAT was Rs 1.678 billion. This includes one off income transaction of Rs 1.611 billion.

D.P. Kumarage

The impact of this on PAT was Rs 1.063 billion. Therefore, the net effect of PAT for the first half of this year stood at Rs 1.381 billion, an increase of 75 percent over the same period last year.

The respective figures for the PLC Group stood at PAT Rs 2.534 billion an increase of 228 percent against the same period previous year of Rs 771 million.

The total asset base of the company was Rs 72.925 billion up from Rs 55.874 billion for the last financial year recording a growth of 30.5 percent. The share holders' fund of Rs 8.441 billion has increased up to Rs 10.758 billion as at today.

The People's Leasing Group assets stood at Rs 87.072 billion as at September 30 2011 and Rs 63.851 billion as at September 30, 2010 reported an increase of 36 percent.

The disbursements for the past six months were Rs 27.5 billion as against Rs 15.5 billion, an increase of 76 percent. The leasing and hire purchase portfolio stood at Rs 65.064 billion as against Rs 49.384 billion for the past year, an increase of 31.75 percent.

The recent success in the IPO where the total collection was Rs 9.3 billion to raise Rs 7 billion funds speaks volumes of confidence the investor placed in the company.

This also indicates the investor appetite for the right priced stock when other impediments are in place. Despite negative sentiments globally as well as locally, this was a huge success.

The PLC Group comprises six subsidiaries and is still growing. All six companies are making profits and we have diversified into concerned areas within the core business. This has helped increase profits while reducing financial costs," Kumarage said.

The PLC plans to improve the reach by further expanding branch and window office network to fuel the business growth. This will be the Group's approach in conducting business in a sustainable manner, he said.