A period of strategic business rationalisation has turned around the fortunes of Kshatriya Holdings in 2009-10, prompting the diversified business group to begin the new fiscal year as Dunamis Capital Plc, a name that embodies the 'power within' the restructured entity.
Shareholders of the Group, which includes First Capital Holdings Plc and Kotmale Holdings Plc, recently endorsed the adoption of the new name in acknowledgement of the dynamism and growth envisaged following the internal initiatives to re-focus on strong and profitable core businesses.
Figures filed with the Colombo Stock Exchange this week attest to the success of the strategy, with Dunamis Capital converting a loss of Rs. 394.5 million in 2008-09 to a profit after tax of Rs. 368.7 million for the year ending 31 March 2010.
Consolidated profit before tax was Rs. 883.9 million, as against a pre-tax loss of Rs. 187 million reported the previous year, while turnover grew 38 per cent to Rs. 3.78 billion. Equity holders of the parent company who were handed a loss of Rs. 454 million a year ago received an attributable profit of Rs. 127 million in the year under review.
The Group's earnings per share totalled Rs. 1.29 as at 31 March 2010, in contrast to a negative Rs. 4.61 in the previous year.
Principal contributors to revenue were Financial Services (the First Capital Group) and Dairy (Kotmale Holdings) with Rs. 2.68 billion and Rs. 1 billion respectively. These two sectors also contributed Rs. 505 million and Rs. 45.4 million to profit after tax.
Manjula Mathews, Managing Director of the Group stated that a series of hard decisions, to dispose of unprofitable businesses, stem the flow of losses, reduce staff and sell assets, combined with strategic investments in the profitable areas of business were largely responsible for the turnaround.
Over the past two years, the Group disposed of its interests in retailing (Magna Supermarkets) and apparel (garment washing plants in India and Sri Lanka) reduced its debts, pruned overheads, reduced staff and made capital investments to strengthen its companies in financial services and dairy, equipping and positioning them for growth in competitive environments.
"The Group's property development business (Kelsey Developments Plc) which was affected by the economic downturn of the past two years has been restructured and is expected to make profits in the current year," she commented.
"We see the achievement of a full year of profit at consolidated level as the start of a new chapter in the history of the Group," she said. "We have retained the strong businesses, buttressed their fundamentals, and made the Group leaner and sharper-focused. Once our debt burden is reduced further, Dunamis Capital will be ready to make new and selective investments that will enhance shareholder value."
"The vision of Dunamis Capital is to ignite value in its investments by unlocking value," she stated. "The name Dunamis represents its original Greek meaning of dynamism or 'the power within' which aptly describes the aspirations of the Group to seek growth and consolidation from its strong constituents, and the inner strengths that underpinned its restructuring."
The Board of Directors of Dunamis Capital Plc comprises Manjula Mathews (Managing Director), Dinesh Schaffter, Jude Fernando and Nihara Rodrigo.
source - www.dailymirror.lk
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