PC House 9 month net profit up 99% to Rs. 140.6 m

Tuesday, 8 February 2011 00:20 -     - {{hitsCtrl.values.hits}}

Customer demand for PCH hardware and software significantly increased in the last quarter driving a 33% improvement in the Company’s total revenue to Rs. 2.56 billion in the nine month period compared to the same period last year.

With this impressive run of the market, PCH continues to maintain its leading position in the IT industry.

Along with this performance, PCH’s core services kept going from strength to strength with the Group’s Profit After Tax increasing by 99% to Rs. 140.6 million in nine months which is an increase from Rs. 70.5 million in the previous year.

This is indicative of the prevailing booming economic conditions having an overall positive impact in the country. PCH was able to leverage on its reach throughout the country as well as its long-standing well-established relations with its worldwide supplier base to provide their very rapidly expanding customer base with all their IT needs at very competitive prices.

Chairman S.H.M. Rishan said: “We continue to strengthen our portfolio at an aggressive pace with the addition of our new products and ventures. This quarter’s results are a strong reflection of the progress we’ve made, and we remain much focused on delivering the best possible solutions and services to meet our customers’ needs.”

Meanwhile, the company’s period over period Profits from Operating Activities increased 19% from Rs. 258.1 million to Rs. 307.2 million and PCH’s total operating expenses increased by 26% to Rs. 224.8 million during the same period. This quantum of increase in expenses reflects the added overheads supporting the increased distribution network, which will be the launching pad for future expansion in sales, and hence a necessary outlay in the current year. In keeping with the President’s initiative to turn Hambantota into the next economic hub, PCH opened one more branch in that city bringing the total branches opened in this financial year to four with plans to open two more branches in Galle and Batticoloa in the 4th quarter.

“We are very pleased with our Q3 performance, which included our highest-ever quarterly sales and strong year-over-year growth in both sales and operating income,” said Sarath Wikramanayake, PCH Director. “All of our retail product categories contributed to our sales growth. In addition, the foundation has now been laid for our two subsidiaries to contribute significantly in the very near future.”

During the past quarter, the company achieved several other major milestones. The launch of the “PCH 9 to 9” IT supermarket is an innovative concept geared for IT shoppers who look for convenience and affordability. Also new to the company’s portfolio is the newest Mobile Telecom Division which introduced the dual SIM mobile brand “Karbonn Mobile” to Sri Lanka.

Adding value to the Company profile is the recruitment of several high profile professionals to head the expanding divisions. Deepthie Wickramasuriya joined the company as COO of PCH’s new subsidiary, Procifinity Limited which will be responsible for PCH’s KPO/ BPO business, set to launch in the 4th quarter.  Failan Saleem, a leading Marketing professional, heads the Mobile Telecom Division and Suran Fonseka joined as CEO of Greenwich Lanka (Private) Ltd., PCH’s other subsidiary responsible for providing solutions to predominantly corporate customers. PCH has reorganised Greenwich Lanka (Private) Ltd. in recent times and has taken on more professional staff to position it to take advantage of the growing IT services market in the country.

PCH is the new corporate brand identity for PC House PLC which was recently listed on the Colombo Stock Exchange.

The new brand identity reflects the change from a family owned business to a public company with a vision to be the benchmark for ICT in Sri Lanka.

PC House was incorporated as a limited liability company in the year 2000, after having commenced business in 1997 and became PCH PLC. Its Board of Directors consists of   S.H.M. Rishan, Mangala Boyagoda, Sarath Wikramanayake, Modarage Thilakasiri, Shanti Kumar Nadarajah, Kuvera de Zoysa and  Sharmila Rishan.