Orient Finance net profit up by 23% in FY13

Wednesday, 12 June 2013 00:55 - - {{hitsCtrl.values.hits}}

According to the un-audited Interim financial statement for the financial year ended 31 March 2013 released to the Colombo Stock Exchange, Orient Finance PLC has recorded a 23% increase in net profit after tax over the previous year to Rs. 168.4 million. This is the highest ever profit made by the company in its decade of operations.

Income for the year recorded a growth of 70%, registering Rs. 825 million as against the Rs. 529 million income recorded in the previous year.

The company’s Earnings Per Share (EPS) improved to Rs. 1.46 for the year from Rs.1.30 recorded in the previous year which is a 23% increase.

By the end of the financial year, the company’s net lending portfolio increased to Rs. 3.3 billion from Rs. 2.2 billion as at 31 March 2012 recording a 49% growth despite the decrease in the overall demand for motor vehicles.

During the year, five window offices located at Anuradhapura, Gampaha, Galle, Kalutara and Kandy were converted to fully fledged branch status while three window offices in Jaffna, Kllinochchi and Batticloa were opened to provide a convenient reach to all its leasing customers. The company has planned to upgrade more window offices to fully fledged branches during the current financial year.

The company commenced mobilising public deposits in August 2012 subsequent to the receipt of the Finance Business license from the Central Bank of Sri Lanka in June 2012. During the year the company has also added gold loans to its product line to become a full service provider in the Financial Services Sector. The company pioneered the concept of a 365-day leasing through its upgraded Welisara branch in December 2012.

Orient Finance PLC is licensed under the Finance Business Act No.42 of 2011 by the Monetary Board of the Central Bank of Sri Lanka. It has a Rating of BBB- (Stable outlook) from ICRA Lanka. Its main lines of businesses are leasing, hire purchase, debt factoring, gold loans and acceptance of fixed deposits.