Tuesday, 17 February 2015 00:23
Softlogic Holdings has posted impressive results in the third quarter as well as first nine months of FY2015.
The Quarterly Group Revenue increased by 46.4% to Rs.11.1 billion with the cumulative period of performance nearing Rs. 28 billion, (up 27.7%). This growth momentum was supported by the consolidation of Odel Plc’s results during the quarter in which a period spanning two months was included.
Consolidated Gross Profit was Rs. 4 billion, reflecting an increase of 36.6%, during the third quarter of the financial year with cumulative Gross Profit increasing 25.6% to reach Rs. 10.0 billion.
Operational expenses increased 41.5% to Rs. 2.9 billion during the quarter with collective operating expenses for 1-3QFY15 also growing by a similar rate to Rs. 7.7 billion. The increasing operational expenses were in view of the Group’s retail expansion and consolidation of Odel Plc.
Finance Income, which registered a 63.1% growth to Rs. 979.5 million during the nine-month period, declined during the quarter to post a loss of Rs. 243.5 million. This was due to mark-to-market losses on Asian Alliance Insurance Plc’s equity investment portfolio during the quarter. The life insurer’s fixed income also declined with the interest rates edging up slightly in the short term treasury/ bond market during the quarter. Rs. 750.1 million (up 42.1%) was transferred as share to life policyholders/insurance contract liabilities during the nine-month period whilst a reversal transfer of Rs. 135.3 million was made during the third quarter on the back of statutory actuarial valuation.
Finance expenses increased by 25.0% to Rs. 753.8 million during the quarter. However, the cumulative finance expenses registered a marginal increase to Rs. 2.1 billion. The increase in Group interest bearing borrowings was partially due to the debt funded acquisition of Odel Plc and Softlogic Finance Plc debenture issue that came in during the period under review. The low market interest rate regime is expected to continue despite the changes at the helm of the Central Bank given the benign trending of inflation.
Group PBT reported Rs. 709.0 million during the quarter taking cumulative PBT to Rs. 1.4 billion (up 39.5%). Profit after tax for the period during the nine months of FY2014/15 amounted to Rs. 1.1 billion (up by 37.4%) with 3QFY15 reporting Rs. 524.0 million.