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Monday, June 14, 2010

Capital Reach Leasing PLC Net Profits soars 69% to Rs. 23 mn

By K.A.S. Perera

Capital Reach Leasing PLC, one of eleven subsidiaries of conglomerate Asia Capital PLC, has recorded growth of 69 percent in net profits of Rs. 23.7 million for the financial year 2009/10 in comparison to Rs. 13.8 million recorded for the corresponding year 2008/ 09. It is observed along with Capital Reach Leasing PLC, seven subsidiaries have positively contributed to a dramatic turn around of Asia Capital PLC in recoding a net profit of Rs. 235 million with a commendable growth in comparison to a loss of Rs. 329 million the corresponding period last year.

Capital Reach Leasing PLC is approved by the Central Bank of Ceylon as a finance and leasing company authorized to mobilize public deposits and leasing business.

The company’s leasing portfolio has increased from Rs. 1,002 million to Rs. 1,526 million for the period under review with a growth of 52 percent. Similarly, public deposits have increased from Rs. 406 million to Rs. 821 million, recording a significant growth of 102 percent. It is significant also that it has a net assets value per share of Rs. 10.85 when compared to some reputed similar quoted companies recording negative assets value.

The holding company Capital Reach Holding PLC been acquired by S.V. Vijayaratnam, founder of multi million dollar global conglomerate the Q group, who invested in 30 countries in July 2009. He has played a key role in turning around many subsidiaries with vast financial resources and expertise.

It is significant to note the company earned substantial net profits of app. Rs. 14 million for the last quarter of 2009/10 and consequently it is reasonable to expect a net profit of Rs. 60 million for the current financial year. With an earnings per share of Rs. 3 and the biggest prospects for the finance sector it is reasonable to expect a price range of Rs. 55 to Rs. 65 during the financial year and recommended for all sectors.

The writer is a Senior Consultant on banking, finance, industrial projects, restructuring and investments. He is a retired Assistant General Manager of Bank of Ceylon.

source - www.island.lk