JKH sells BPO Solutions unit in India for Rs. 633 m

Monday, 6 November 2017 00:47 - - {{hitsCtrl.values.hits}}

John Keells Holdings (JKH) has sold its 100% interest in a BPO unit in India for Rs. 633 million.

The divestiture occurred in September and the move was due to the fact that the BPO unit did not figure as part of its core business.

John Keells BPO Solutions India provided front, mid and back office support for small to medium enterprises as well as global companies.

The gain on disposal was Rs. 28.5 million whilst the net cash inflow on disposal was Rs. 130.8 million.

In the second quarter of FY18, JKH Group’s Information Technology segment’s profit before tax was Rs. 141 million, down by 13% from the corresponding period of the last financial year.

Last year (FY17), the Information Technology industry group recorded revenue of Rs. 11.11 billion and a PAT of Rs. 468 million, contributing 9% and 3% to Group revenue and PAT respectively.

The 2016/17 PAT increased significantly over the previous year. The Office Automation (OA) business improved its market share in both the mobile and copier markets, driven by increased volumes and revenue from new products.