Tuesday, September 27, 2011

Multi Finance net up 334% to 25.58mn

One of the hot picks in the recent past and cynosure amongst the retailers in the Colombo Stock Market Multi Finance PLC (MFL) has recorded a Profit After Tax (PAT) increase of 334%, as the company recorded a PAT of Rs.25.58 million for financial year ending 2010/11.

As indicated in the company’s audited financials, MFL’s lending portfolio grew significantly by 72% to Rs.569.98 million and the deposits from customers rose to Rs.144.73 million as at  March 31, 2011, which is an increase of 18%.

The company’s Total Gross Income moved up from Rs.80.6 million to Rs.159.5 million in 2011, recording a 98% growth. MFL laid more emphasis on portfolio quality as opposed to being focused on volume growth. It weathered a year full of challenges and its Non Performing Loans (NPL) ratio remained below 2%, the lowest when compared with the competitors in the industry.

This has been the first time that the company published its annual report, after going public by way of an Introduction on the Diri Savi Board of CSE, in May 2011. MFL which has been in business for the past 37 years is now poised to become a progressive player in the Registered Finance Company (RFC) sector and it’s certainly cognisant to “take notice” as well. 

As the newly appointed Chairman, Kuvera de Zoysa stated, “Our objective is to change the financial market and Multi Finance is now on a mission to make people sit up and take notice of a wide range of products and services that would be offered in the near future, which would defy convention but remain within the regulations of RFCs.”

A. H. M. Riyaz, Group Executive Director/CEO explained, “Multi Finance, despite being a small player in the RFC sector, continued to carry out its business activities in a prudent manner during the tenure of the financial crisis that prevailed a few years ago.”

With the newly appointed Board of Directors of the company, Multi Finance is planning on a strong expansion of its branch network in strategically viable geographical regions island-wide and also hopes to reach out to the rural communities with enhanced Micro Finance products and services. At present, the company has branches in strategic locations namely, Colombo, Gampaha, Kurunegala and Matara whilst the Head Office is located in Kandy.

“We have been able to build long-term financial relationships proactively with our clients, going beyond the conventional customer service concept and this has stood in good stead during the times when weakened sentiments prevailed amongst the investor community in Sri Lanka,” Riyaz added.

source - www.dailymirror.lk

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