Tuesday 16 February 2016

Softlogic Group revenue tops 15 bn in 3Q

Softlogic group revenue reported a strong growth of 43.8% to near Rs. 16 billion while the cumulative revenue has increased 51.7% to Rs. 42.1 in the third quarter of FY2015/16.

Chairman, Ashok Pathirage said that the contributors to the Group's outstanding performance were primarily derived from its fully owned subsidiaries in the Retail (33.3% contribution to Group topline) and ICT (29.7% of Group revenue) sectors followed by Healthcare Services (17.3%) and Financial Services (16.0%).

"We are yet to reach full potential of our Leisure sector with our 5-star city hotel to be opened, perhaps, by mid-2016.The sales team of the automotive sector is taking aggressive sales effort and cost cutting measures to enhance bottom line," he said.

Consolidated Gross Profit has reached Rs.4.9 billion, reflecting an increase of 24.2%, during the third quarter of the financial year with cumulative Gross Profit increasing 35.8% to Rs. 13.6 billion. Operational expenses increased 17.7% to Rs. 3.4 billion during the quarter with operating expenses for 1-3 QFY16 growing 25.5% to Rs. 9.6 billion.

Stringent cost control measures have been a vital part of our expansion strategy and helped operating cost margins to decline from 22.8% in 1-3QFY16 from 27.6% in the cumulative comparative period.

The quarter registered an increase of 11.3% in administrative costs to Rs. 2.6 billion and 44.1% increase in distribution costs to Rs. 820.6 million.

Thereby, distribution costs increased to Rs.2.1 billion (up 29.5%) while administration costs reached Rs. 7.5 Bn(up 24.4%) for the cumulative period under review.

Finance Income, which registered a decline of 12.1% to Rs. 860.6 million during the nine-month period and Rs. 312.9 million for the quarter (a decrease of Rs. 243.5 million in the comparative quarter).

The increasing interest rates resulted in 14.9% increase in finance cost for the cumulative period to Rs. 2.4 billion whilst the quarter witnessed a marginal increase of 7.7% to Rs. 811.7 million.

Group PBT reported a significant increase of 70.0% to Rs.2.4 billion during the cumulative period while the quarterly PBT improved 92.9% to Rs. 1.4 billion. Taxation for the period more than doubled to Rs. 700.7 million (Rs. 327.7 million in 1-3QFY15) during the nine-month period.

Profit after tax for the period during the nine months of FY2015/16 amounted to Rs.1.7 billion (up by 56.9%) with 3QFY16 reporting Rs.1.0 billion (up99.6%).
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