The LP Gas industry locally has an immense potential as a cleaner source of energy. There is a significant imbalance in energy usage, which has to be adjusted with cleaner and more economic sources of energy like LP Gas in our country. However, the key challenges facing the LP Gas industry will be succeeding and educating the authorities and decision makers concerned regarding the use of LP Gas.
Laugfs Gas PLC reported a record performance during the 4th quarter ended 31st March 2013, crossing a ground-breaking Rs. 10.6 billion in revenue. For the year ended March 31, the group reported a net profit of Rs. 1.06 billion, up 29 percent from Rs. 822 million a year earlier.
"A landmark achievement for the group, Laugfs achieved this feat despite unprecedented changes which have taken place in its comparatively short one and a half decades of existence. The Group was able to withstand the turbulent times and preserved core of the business, by staying focused on the fundamentals of the operation, while being willing to change everything else necessary to win and retain customers," the company said in a statement releasing its financial results to the stock exchange.
Laugfs posted a Profit Before Tax of Rs.1.3 billion, displaying a remarkable growth of 29 percent over the previous financial year.
The Group Total Comprehensive Income for the year, Net of Tax recorded a commendable Rs.1.0 billion as against Rs. 597 million last year, which is a creditable improvement.
The Total Group Assets increased by 3 percent to a position of Rs.10.6 billion while Property, Plant and Equipment alone increased to Rs.6.5 billion with Net of Depreciation showing an increase of 18 percent over previous year.
"The productive investments made in this manner would accrue benefits to the shareholders in the ensuing years in the form of better returns having comparatively shorter gestation periods and early pay backs," the company said.
The group retained earnings increased by 16 percent to Rs.3.5 billion, while Net Assets increased by 8 percent to Rs.6.5 billion. The Net Asset Value Per Share has increased to Rs.16.76 from Rs.15.58 last year.
The Earnings Per Share (EPS) increased by 28 percent from Rs.2.14 to Rs.2.74 per share.
In terms of the Group’s core business activities downstream operations of LP Gas once again recorded highest ever revenue of Rs.9.7 billion, an increase of 16 percent over the preceding year.
However, Gross Profit margins reduced to 11 percent from the previous year’s 14 percent, mainly due to escalation of world market prices of LP Gas and the impact of upward movement of foreign exchange rates prevalent during the greater part of the financial year under review.
Nevertheless, Laugfs’ EBITDA reached Rs.1.6 billion, amounting to a 62 percent increase over the previous year despite stated uncertainties and slowdown of economic activities that were faced with.
The Profit Before Tax of the company from continuing operations was recorded at Rs.1.4 billion, amounting to a 72 percent improvement over the previous year.
Notably, Total Comprehensive Income Net of Tax to Rs.1.2 billion during the year under review from Rs. 411 million recorded last year while the Company’s total liabilities reduced by 4 percent, during the year to Rs.3.9 billion.
Retained earnings increased sharply by 27 percent from Rs. 2.3 billion last year to Rs.3 billion in the current year.
"The array of achievements described both for the Group and for the company in its core business activity, converged to underscore the strength of a financially healthy organization that always meets its growth targets and maintains uninterrupted momentum, despite uncertain external environment forces that usually prevails. Despite all these impressive achievement we believe the Laugfs Gas’s best and most exiting days remain ahead," the company said.
Considering the group’s strong performance throughout the year, The Board of Directors decided to declare a final dividend of Rs. 1.50 per share for the financial year ended 31st March 2013. This is the third consecutive time the company declared dividends after its historic IPO in December 2010.
"The LP Gas industry globally is in the midst of a profound structural change as new sources of supply compete for market share, and as a cleaner source of energy take a greater share of primary energy consumption.
"The industry globally can take heart that consumption so far has managed to keep pace with this production surge, despite uncertainty of the global economic slowdown. With LP gas demand and supply equilibrium maintain at optimum levels world market price stability is ensured at least in the short to medium term.
"The LP Gas industry locally has an immense potential as a cleaner source of energy, and also since the penetration levels are comparatively very low, as against some of the Asian countries. There is a significant imbalance in energy usage, which has to be adjusted with cleaner and more economic sources of energy like LP Gas in our country.
"However, the key challenges facing the LP Gas industry, in the country in the ensuing years, will be succeeding and educating the authorities and decision makers concerned regarding the use of LP Gas.
"In order to do so, the stakeholders involved are in need of effective, consistent communication using rigorous evidence based on data and analysis. Therefore, it is imperative that the industry must speak with strong, unified voice to persuade the authorities, other stakeholders and financial markets to support the use of LP Gas where appropriate," Laugfs said.
source - www.island.lk
Thursday, June 6, 2013
Cargills posts stable performance in tough FY13
◾Revenue up15% to Rs. 55.4 b
◾Bottom line down 46% to Rs. 595 m
◾Operating profit up 3% to Rs. 2.3 b
◾Net financing cost up 94% to Rs. 1.2 b; Borrowings double to Rs. 14 b
Cargills (Ceylon) PLC has reported a stable performance for the year ended 31 March 2013, despite a substantially challenging market environment attributed to policy changes coupled with higher borrowing costs and a slower overall macro-economic growth.
Group revenue recorded a growth of 14.8% in FY13 at Rs. 55.4 billion. Operating profit grew by 3.3% to reach Rs. 2.3 billion, despite the VAT impact and the soft alcohol and biscuits segments performing below potential. Profit-after-tax for the year ended 31 March 2013 declined by 45.6% to Rs. 594.8 million.
“The steep rise in finance costs and increased debt levels also contributed to this decline,” Cargills said.
Finance cost for the year concluded amounted to Rs. 1.2 billion up from Rs. 630 m in FY12 while total Group debt at the year-end stood at Rs. 14.1 billion, up from Rs. 7.4 billion a year earlier.
Cargills…
The Company said the lack of transitional provisions to allow for the claiming of input Value-Added-Tax (VAT) on the closing stock as at 31 December 2012 had a significant impact on the Group’s retail business which enjoys peaks sales during the third and fourth quarters.
Despite the inadequate time provided to adjust to the new policy, the retail team partly mitigated the adverse one-off impact of the policy change by curtailing inventory.
“While the challenges in the external environment remain, ‘Cargills Food City’ is committed to maintaining its consistent ‘low price’ positioning across all categories and has not passed on the VAT to its customers,” the Company said.
Its established businesses in consumer brands and restaurants segments have continued to report a steady performance in terms of volume and transaction growth respectively. The restaurant sector’s diversification into the entertainment-dining segment with the launch of TGI Friday’s in Sri Lanka is in pre-operation stage and the flagship restaurant is set to open in the new financial year. Meanwhile, the KFC chain experienced a significant increase in input costs and steps have been taken to modify its value-for-money range to offer a lower entry price for KFC customers.
“While the overall Group results for the year are below expectation, the management has already initiated measures towards turning around this performance. In the year ahead, Cargills would be increasingly focused on building the value-for-money advantage in its product portfolios while rationalising inputs costs and enhancing efficiencies to sustain profitability.
The Group remains confident of the long term potential of its businesses and continues to be steadfastly committed to its ethos of creating sustainable value for all its stakeholders,” Cargills said.
source - www.ft.lk
◾Bottom line down 46% to Rs. 595 m
◾Operating profit up 3% to Rs. 2.3 b
◾Net financing cost up 94% to Rs. 1.2 b; Borrowings double to Rs. 14 b
Cargills (Ceylon) PLC has reported a stable performance for the year ended 31 March 2013, despite a substantially challenging market environment attributed to policy changes coupled with higher borrowing costs and a slower overall macro-economic growth.
Group revenue recorded a growth of 14.8% in FY13 at Rs. 55.4 billion. Operating profit grew by 3.3% to reach Rs. 2.3 billion, despite the VAT impact and the soft alcohol and biscuits segments performing below potential. Profit-after-tax for the year ended 31 March 2013 declined by 45.6% to Rs. 594.8 million.
“The steep rise in finance costs and increased debt levels also contributed to this decline,” Cargills said.
Finance cost for the year concluded amounted to Rs. 1.2 billion up from Rs. 630 m in FY12 while total Group debt at the year-end stood at Rs. 14.1 billion, up from Rs. 7.4 billion a year earlier.
Cargills…
The Company said the lack of transitional provisions to allow for the claiming of input Value-Added-Tax (VAT) on the closing stock as at 31 December 2012 had a significant impact on the Group’s retail business which enjoys peaks sales during the third and fourth quarters.
Despite the inadequate time provided to adjust to the new policy, the retail team partly mitigated the adverse one-off impact of the policy change by curtailing inventory.
“While the challenges in the external environment remain, ‘Cargills Food City’ is committed to maintaining its consistent ‘low price’ positioning across all categories and has not passed on the VAT to its customers,” the Company said.
Its established businesses in consumer brands and restaurants segments have continued to report a steady performance in terms of volume and transaction growth respectively. The restaurant sector’s diversification into the entertainment-dining segment with the launch of TGI Friday’s in Sri Lanka is in pre-operation stage and the flagship restaurant is set to open in the new financial year. Meanwhile, the KFC chain experienced a significant increase in input costs and steps have been taken to modify its value-for-money range to offer a lower entry price for KFC customers.
“While the overall Group results for the year are below expectation, the management has already initiated measures towards turning around this performance. In the year ahead, Cargills would be increasingly focused on building the value-for-money advantage in its product portfolios while rationalising inputs costs and enhancing efficiencies to sustain profitability.
The Group remains confident of the long term potential of its businesses and continues to be steadfastly committed to its ethos of creating sustainable value for all its stakeholders,” Cargills said.
source - www.ft.lk
Wednesday, June 5, 2013
Sri Lanka stocks close down 0.4-pct
June 05, 2013 (LBO) - Sri Lanka's stock closed down 0.42 percent retreating for a third consecutive day with losses in the index heavy diversified stocks, brokers said.
The benchmark Colombo All Share Index closed 26.82 points lower at 6,422.84 and the S&P SL 20 Index closed 10.59 points lower at 3,635.31 down 0.29 percent.
Turnover was 818 million rupees down from one billion day earlier.
Foreigners brought 432 million rupees worth shares while selling 118 million rupees of shares, in a day that 76 stocks advanced and 131 stocks declined.
Cargills contributed most to the index gain closing at 184.00 rupees up 4.40 rupees, Hatton National Bank closed at 168.80 rupees up 1.80 rupees and Dipped Products gained 6.50 rupees to close at 133.00 rupees.
Meanwhile, Asian markets also fell Wednesday, taking a negative lead from Wall Street as data showed the US trade deficit had widened, while Tokyo slumped following a policy speech by Japan's prime minister.
Tokyo dived 3.83 percent, or 518.89 points, to 13,014.87 -- continuing a rollercoaster couple of weeks that has seen the Nikkei lose about 17 percent.
In other Asian markets, Seoul gave up 1.52 percent, or 30.32 points, to end at 1,959.19. Hong Kong lost 0.97 percent, or 216.28 points, to end at 22,069.24 and Shanghai was flat, dipping 1.49 points to 2,270.93.
In the banking secor, Commercial Bank of Ceylon closed at 123.30 rupees down 70 cents and DFCC Bank closed at 143.90 rupees, up 1.40 rupees. National Development Bank closed at 173.60 rupees down 90 cents. Pan Asia closed at 20.50 rupees down 10 cents.
Union Bank of Colombo closed flat at 19.20 rupees and Sampath Bank gained 1.40 rupees to close at 219.90 rupees.
The Lion Brewery lost 17.70 rupees to close at 391.30 rupees, Distilleries Company lost 40 cents to close at 199.90 rupees and Ceylon Tobacco Company too lost 30 cents to close at 999.60 rupees.
John Keells Holdings lost 2.30 rupees to close at 279.40 rupees and Nestle Lanka closed at 1,976.80 rupees down 1.20 rupees. Aitken Spence closed at 134.00 down 1.00 rupee. Browns Investments closed at 03.40 rupees down 10 cents.
Softlogic Holding closed at 134.10 rupees up 10 cents and Vallibel One closed at 19.20 rupees up 10 cents.
Sri Lanka Telecom closed at 42.30 rupees down 40 cents and Dialog Axiata closed flat at 09.30 rupees.
source - www.lbo.lk
The benchmark Colombo All Share Index closed 26.82 points lower at 6,422.84 and the S&P SL 20 Index closed 10.59 points lower at 3,635.31 down 0.29 percent.
Turnover was 818 million rupees down from one billion day earlier.
Foreigners brought 432 million rupees worth shares while selling 118 million rupees of shares, in a day that 76 stocks advanced and 131 stocks declined.
Cargills contributed most to the index gain closing at 184.00 rupees up 4.40 rupees, Hatton National Bank closed at 168.80 rupees up 1.80 rupees and Dipped Products gained 6.50 rupees to close at 133.00 rupees.
Meanwhile, Asian markets also fell Wednesday, taking a negative lead from Wall Street as data showed the US trade deficit had widened, while Tokyo slumped following a policy speech by Japan's prime minister.
Tokyo dived 3.83 percent, or 518.89 points, to 13,014.87 -- continuing a rollercoaster couple of weeks that has seen the Nikkei lose about 17 percent.
In other Asian markets, Seoul gave up 1.52 percent, or 30.32 points, to end at 1,959.19. Hong Kong lost 0.97 percent, or 216.28 points, to end at 22,069.24 and Shanghai was flat, dipping 1.49 points to 2,270.93.
In the banking secor, Commercial Bank of Ceylon closed at 123.30 rupees down 70 cents and DFCC Bank closed at 143.90 rupees, up 1.40 rupees. National Development Bank closed at 173.60 rupees down 90 cents. Pan Asia closed at 20.50 rupees down 10 cents.
Union Bank of Colombo closed flat at 19.20 rupees and Sampath Bank gained 1.40 rupees to close at 219.90 rupees.
The Lion Brewery lost 17.70 rupees to close at 391.30 rupees, Distilleries Company lost 40 cents to close at 199.90 rupees and Ceylon Tobacco Company too lost 30 cents to close at 999.60 rupees.
John Keells Holdings lost 2.30 rupees to close at 279.40 rupees and Nestle Lanka closed at 1,976.80 rupees down 1.20 rupees. Aitken Spence closed at 134.00 down 1.00 rupee. Browns Investments closed at 03.40 rupees down 10 cents.
Softlogic Holding closed at 134.10 rupees up 10 cents and Vallibel One closed at 19.20 rupees up 10 cents.
Sri Lanka Telecom closed at 42.30 rupees down 40 cents and Dialog Axiata closed flat at 09.30 rupees.
source - www.lbo.lk
Bourse consolidates but foreign net inflow tops Rs. 14 b mark
The Colombo stock market saw mixed fortunes with some degree of consolidation led by profit taking by investors though the net foreign inflow remained robust surpassing the Rs. 14 billion mark.
Heavy deals on Commercial Bank shares saw the market enjoy a net inflow of Rs. 439 million thereby pushing the year-to-date figure to Rs. 14.3 billion. According to NDB Stockbrokers, foreign holding of COMBank rose by 3.18 million shares whilst the counter which dominated turnover saw three off-board blocks totaling .9 million shares done at Rs. 125 each. COMBank closed at Rs. 124, up by 1.64%.
That apart, the rest of the market was relatively lacklustre though it managed to gain lost ground mid-day. “The Bourse experienced a considerable dip during the early hours while a gradual recovery could be seen during the latter half of the day, closing the market in a mixed note,” LOLC Securities said.
The ASPI dipped 2.02 points and the S&P SL 20 Index gained 10.31 points. The market is up 14.3% year-to-date.
Turnover was a healthy Rs. 1 billion.
“Indices consolidated further,” noted Softlogic Stockbrokers, adding that the Bourse further continued its volatile path on a much wider 30 points band.
It said gains recorded on Chevron Lubricants (+6.0%) and Commercial Bank (+1.6%) weighted positively on the index. However losses denoted on John Keells Holdings (-0.6%) and The Good Hope (-13.7%) held the index on marginal grounds.
Softlogic said Chevron Lubricants extending the prolonged rally as the high dividend payer saw a notable appreciation in price with strong on-board volume. LLUB closed at Rs. 365.9 with a gain of 6.0%.
Haycarb too recorded a single off-board block of 300,000 shares at Rs. 200 each. The Haycarb share price gained by Rs. 5.20 (2.60%) to close at Rs. 205.
Premier blue chip John Keells Holdings continued its slide, depicting the highest on-board turnover for the day. The counter witnessed a single large on-board block of 60,000 shares which was transacted at Rs. 282.50 before settling at Rs. 281.70.
Softlogic also said retailer activity was minimum and concentrated on some selected stocks such as Nation Lanka Finance, Commercial Credit and Finance and Abans Finance.
Asia Wealth said Abans Electricals witnessed retail interest that enabled the counter to record its 52 week high price of Rs. 175 and to be on the top turnover list. The counter gained 20.5% to end the day at Rs. 162.4.
source - www.ft.lk
Heavy deals on Commercial Bank shares saw the market enjoy a net inflow of Rs. 439 million thereby pushing the year-to-date figure to Rs. 14.3 billion. According to NDB Stockbrokers, foreign holding of COMBank rose by 3.18 million shares whilst the counter which dominated turnover saw three off-board blocks totaling .9 million shares done at Rs. 125 each. COMBank closed at Rs. 124, up by 1.64%.
That apart, the rest of the market was relatively lacklustre though it managed to gain lost ground mid-day. “The Bourse experienced a considerable dip during the early hours while a gradual recovery could be seen during the latter half of the day, closing the market in a mixed note,” LOLC Securities said.
The ASPI dipped 2.02 points and the S&P SL 20 Index gained 10.31 points. The market is up 14.3% year-to-date.
Turnover was a healthy Rs. 1 billion.
“Indices consolidated further,” noted Softlogic Stockbrokers, adding that the Bourse further continued its volatile path on a much wider 30 points band.
It said gains recorded on Chevron Lubricants (+6.0%) and Commercial Bank (+1.6%) weighted positively on the index. However losses denoted on John Keells Holdings (-0.6%) and The Good Hope (-13.7%) held the index on marginal grounds.
Softlogic said Chevron Lubricants extending the prolonged rally as the high dividend payer saw a notable appreciation in price with strong on-board volume. LLUB closed at Rs. 365.9 with a gain of 6.0%.
Haycarb too recorded a single off-board block of 300,000 shares at Rs. 200 each. The Haycarb share price gained by Rs. 5.20 (2.60%) to close at Rs. 205.
Premier blue chip John Keells Holdings continued its slide, depicting the highest on-board turnover for the day. The counter witnessed a single large on-board block of 60,000 shares which was transacted at Rs. 282.50 before settling at Rs. 281.70.
Softlogic also said retailer activity was minimum and concentrated on some selected stocks such as Nation Lanka Finance, Commercial Credit and Finance and Abans Finance.
Asia Wealth said Abans Electricals witnessed retail interest that enabled the counter to record its 52 week high price of Rs. 175 and to be on the top turnover list. The counter gained 20.5% to end the day at Rs. 162.4.
source - www.ft.lk
Tuesday, June 4, 2013
Sri Lanka stocks close flat
June 04, 2013 (LBO) - Sri Lanka's stock closed flat Tuesday with investors continuing to take profit and losses in some index heavy stocks like JKH, DIST and NEST, brokers said.
The benchmark Colombo All Share Index closed 02.02 points lower at 6,449.66 and the S&P SL 20 Index closed 10.31 points higher at 3,645.90 up 0.29 percent.
Turnover was one billion rupees up from 752 million day earlier.
Foreigners brought 541 million rupees worth shares while selling 102 million rupees of shares, in a day that 87 stocks advanced and 125 stocks declined.
Chevron Lubricants Lanka contributed most to the index gain closing at 345.20 rupees up 16.90 rupees. The reduction of global oil prices has helped the company’s share price to rise and demand for the stock by investors has also gone up, brokers said.
John Keells Holdings lost 1.80 rupees to close at 281.70 rupees and Nestle Lanka closed at 1,978.00 rupees down 19.60 rupees.
Commercial Bank of Ceylon closed at 124.00 rupees up 2.00 rupees helped by a crossing of three million shares at a price of 125 per share. Lanka IOC gained 1.60 rupees to close at 28.00 rupees.
Hatton National Bank closed flat at 167. 00 rupees, DFCC Bank closed at 142.50 rupees up 50 cents and National Development Bank closed at 174.50 rupees up 40 cents.
Pan Asia closed at 20.60 rupees down 40 cents. Union Bank of Colombo closed at 19.20 rupees up 10 cents and Sampath Bank lost 1.60 rupees to close at 218.50 rupees. Banking sector which reached its peak has lost ground due to profit taking by investors, broker said
LB Finance closed at 131.60 rupees down 2.80 rupees and Peoples Leasing and Finance closed at 14.90 rupees up 10 cents.
The Lion Brewery lost 1.00 rupees to close at 409.00 rupees, Distilleries Company lost 1.20 rupees to close at 200.30 rupees and Ceylon Tobacco Company too lost 10 cents to close at 999.90 rupees.
Aitken Spence closed at 134.00 down 1.00 rupee. Browns Investments closed at 03.40 rupees down 10 cents.
Softlogic Holding closed at 11.40 rupees down 30 cents and Vallibel One closed at 19.10 rupees down 60 cents.
Sri Lanka Telecom closed at 42.70 rupees down 30 cents and Dialog Axiata closed at 09.30 down 10 cents. (Ends)
source - www.lbo.lk
The benchmark Colombo All Share Index closed 02.02 points lower at 6,449.66 and the S&P SL 20 Index closed 10.31 points higher at 3,645.90 up 0.29 percent.
Turnover was one billion rupees up from 752 million day earlier.
Foreigners brought 541 million rupees worth shares while selling 102 million rupees of shares, in a day that 87 stocks advanced and 125 stocks declined.
Chevron Lubricants Lanka contributed most to the index gain closing at 345.20 rupees up 16.90 rupees. The reduction of global oil prices has helped the company’s share price to rise and demand for the stock by investors has also gone up, brokers said.
John Keells Holdings lost 1.80 rupees to close at 281.70 rupees and Nestle Lanka closed at 1,978.00 rupees down 19.60 rupees.
Commercial Bank of Ceylon closed at 124.00 rupees up 2.00 rupees helped by a crossing of three million shares at a price of 125 per share. Lanka IOC gained 1.60 rupees to close at 28.00 rupees.
Hatton National Bank closed flat at 167. 00 rupees, DFCC Bank closed at 142.50 rupees up 50 cents and National Development Bank closed at 174.50 rupees up 40 cents.
Pan Asia closed at 20.60 rupees down 40 cents. Union Bank of Colombo closed at 19.20 rupees up 10 cents and Sampath Bank lost 1.60 rupees to close at 218.50 rupees. Banking sector which reached its peak has lost ground due to profit taking by investors, broker said
LB Finance closed at 131.60 rupees down 2.80 rupees and Peoples Leasing and Finance closed at 14.90 rupees up 10 cents.
The Lion Brewery lost 1.00 rupees to close at 409.00 rupees, Distilleries Company lost 1.20 rupees to close at 200.30 rupees and Ceylon Tobacco Company too lost 10 cents to close at 999.90 rupees.
Aitken Spence closed at 134.00 down 1.00 rupee. Browns Investments closed at 03.40 rupees down 10 cents.
Softlogic Holding closed at 11.40 rupees down 30 cents and Vallibel One closed at 19.10 rupees down 60 cents.
Sri Lanka Telecom closed at 42.70 rupees down 30 cents and Dialog Axiata closed at 09.30 down 10 cents. (Ends)
source - www.lbo.lk
First Capital turnaround after turnover doubles & four-fold operating income growth
First Capital Holdings PLC has reported profit after tax of Rs 520.9 million for the year ending March 31, 2013, a turnaround from a net loss of Rs 268.5 million at the end of the previous year.
While active trading strategies in the Government Securities market generated a gain of Rs 300 million in the review period, net interest income of Rs 295 million and fee Income of Rs 40 million enabled the Group to quadruple net operating income (before expenses) to Rs 638 million, the company said in a statement.
Higher business volumes resulted in a doubling of turnover, and the group, which comprises of four financial services companies, posted profit before tax of Rs 548.7 million for the year, as against a pre-tax loss of Rs 253.6 million for 2011-12.
Profit attributable to equity holders of the parent company reached Rs 490.1 million from a negative Rs 259.9 million a year previously.
"Clearly, the strength of our capital base, which enables us to carry appropriate long term positions on government securities, generates above average returns from our primary dealership," said Jehaan Ismail, CEO of First Capital Holdings. "But we have also generated a noteworthy return from the corporate debt market, and are making a name as a full service investment bank."
He said the Group had strengthened its management team in key disciplines during the year under review and moved its offices to a more conveniently located downtown address in Colombo to better serve its growing client base.
Consequent to its significantly improved performance, earnings per share of First Capital Holdings PLC increased to Rs 4.84 from a loss per share of Rs 2.57 in 2011-12.
First Capital Holdings comprises of First Capital Limited, First Capital Treasuries Limited, First Capital Markets Limited and First Capital Asset Management Limited. The Group raised Rs. 6 billion for a diverse group of clients through commercial paper, debentures and securitisations in the year reviewed.
The group has recently acquired a 70 per cent stake in a stock broking firm and states that this should enhance its revenue stream from equity based businesses in 2013/14.
source - www.island.lk
While active trading strategies in the Government Securities market generated a gain of Rs 300 million in the review period, net interest income of Rs 295 million and fee Income of Rs 40 million enabled the Group to quadruple net operating income (before expenses) to Rs 638 million, the company said in a statement.
Higher business volumes resulted in a doubling of turnover, and the group, which comprises of four financial services companies, posted profit before tax of Rs 548.7 million for the year, as against a pre-tax loss of Rs 253.6 million for 2011-12.
Profit attributable to equity holders of the parent company reached Rs 490.1 million from a negative Rs 259.9 million a year previously.
"Clearly, the strength of our capital base, which enables us to carry appropriate long term positions on government securities, generates above average returns from our primary dealership," said Jehaan Ismail, CEO of First Capital Holdings. "But we have also generated a noteworthy return from the corporate debt market, and are making a name as a full service investment bank."
He said the Group had strengthened its management team in key disciplines during the year under review and moved its offices to a more conveniently located downtown address in Colombo to better serve its growing client base.
Consequent to its significantly improved performance, earnings per share of First Capital Holdings PLC increased to Rs 4.84 from a loss per share of Rs 2.57 in 2011-12.
First Capital Holdings comprises of First Capital Limited, First Capital Treasuries Limited, First Capital Markets Limited and First Capital Asset Management Limited. The Group raised Rs. 6 billion for a diverse group of clients through commercial paper, debentures and securitisations in the year reviewed.
The group has recently acquired a 70 per cent stake in a stock broking firm and states that this should enhance its revenue stream from equity based businesses in 2013/14.
source - www.island.lk
Monday, June 3, 2013
With 15% gain Colombo stock market beats BRICS on YTD basis
The Colombo stock market has risen by 15.8% on an YTD basis (dollarised), well ahead of BRICS markets, according to broking firm DNH Financial.
It said while the BRICS have historically experienced fast growing economies, rapid FDI and FPI inflows and have remained a darling amongst hedge fund investors over the years, Sri Lanka could offer an effective panacea and ‘sharpe’ solution for Emerging Market (EM) portfolios seeking sustainable and robust domestic focused growth emanating from a local consumption cycle largely unaffected by the current global macroeconomic risks.
“While it is acknowledged that for foreign investment managers, investing in the Sri Lankan Bourse is not without challenges (considering its relatively low market liquidity which has historically been a deterrent for EM funds seeking investments), with market liquidity levels now generally improving, it is believed that the Bourse will attract increased foreign buying interest going forward,” DNH said.
It said whilst a mixed bag of quarterly corporate results were released last week, earnings have been largely positive with margin improvement offsetting lower than expected top line growth for several counters.
Noting that foreign participation has generally been the market catalyst over the last few weeks, DNH expects that market activity will be relatively restrained in the immediate term due to the easing off in international markets (and hence foreign buying).
“However, momentum is expected to gather steam in the medium to longer term with a break to the upside from the relatively sideways flag that has been experienced as foreign interest re-emerges,” DNH said.
“ Consequently, the current market environment is viewed as an opportunity for medium to longer investors to clean their books, re-align their portfolios and maintain a healthy investment horizon and focus on companies that will deliver quality earnings,” it added.
“While the majority of the 1Q2013/4Q2012 corporate results have been released to the market, it is highly important to determine the source of profits, whether a result of top line growth or an increase in other income or a dramatic cut in costs that could have a negative impact on future productivity.
Of perhaps even more significance is the sustainability of such earnings. In this respect, investors are advised to seek quality stocks, both in terms of the top line and the bottom line but which are also sufficiently liquid,” DNH emphasised.
source - www.ft.lk
It said while the BRICS have historically experienced fast growing economies, rapid FDI and FPI inflows and have remained a darling amongst hedge fund investors over the years, Sri Lanka could offer an effective panacea and ‘sharpe’ solution for Emerging Market (EM) portfolios seeking sustainable and robust domestic focused growth emanating from a local consumption cycle largely unaffected by the current global macroeconomic risks.
“While it is acknowledged that for foreign investment managers, investing in the Sri Lankan Bourse is not without challenges (considering its relatively low market liquidity which has historically been a deterrent for EM funds seeking investments), with market liquidity levels now generally improving, it is believed that the Bourse will attract increased foreign buying interest going forward,” DNH said.
It said whilst a mixed bag of quarterly corporate results were released last week, earnings have been largely positive with margin improvement offsetting lower than expected top line growth for several counters.
Noting that foreign participation has generally been the market catalyst over the last few weeks, DNH expects that market activity will be relatively restrained in the immediate term due to the easing off in international markets (and hence foreign buying).
“However, momentum is expected to gather steam in the medium to longer term with a break to the upside from the relatively sideways flag that has been experienced as foreign interest re-emerges,” DNH said.
“ Consequently, the current market environment is viewed as an opportunity for medium to longer investors to clean their books, re-align their portfolios and maintain a healthy investment horizon and focus on companies that will deliver quality earnings,” it added.
“While the majority of the 1Q2013/4Q2012 corporate results have been released to the market, it is highly important to determine the source of profits, whether a result of top line growth or an increase in other income or a dramatic cut in costs that could have a negative impact on future productivity.
Of perhaps even more significance is the sustainability of such earnings. In this respect, investors are advised to seek quality stocks, both in terms of the top line and the bottom line but which are also sufficiently liquid,” DNH emphasised.
source - www.ft.lk
First Capital posts net profit of Rs. 520.9 m in FY13
First Capital Holdings PLC has reported profit after tax of Rs. 520.9 million for the year ending 31 March 2013, in a noteworthy turnaround from a net loss of Rs. 268.5 million at the end of the previous year.
While active trading strategies in the Government securities market generated a gain of Rs. 300 million in the review period, net interest income of Rs. 295 million and fee income of Rs. 40 million enabled the group to quadruple net operating income (before expenses) to Rs. 638 million.
Higher business volumes resulted in a doubling of turnover, and the group, which comprises of four financial services companies, posted profit before tax of Rs. 548.7 million for the year, as against a pre-tax loss of Rs. 253.6 million for 2011-12.
Profit attributable to equity holders of the parent company reached Rs. 490.1 million from a negative Rs. 259.9 million a year previously.
“Clearly, the strength of our capital base, which enables us to carry appropriate long term positions on Government securities, generates above average returns from our primary dealership,” said Jehaan Ismail, CEO of First Capital Holdings. “But we have also generated a noteworthy return from the corporate debt market and are making a name as a full service investment bank.”
He said the group had strengthened its management team in key disciplines during the year under review and moved its offices to a more conveniently located downtown address in Colombo to better serve its growing client base.
Consequent to its significantly improved performance, earnings per share of First Capital Holdings increased to Rs. 4.84 from a loss per share of Rs. 2.57 in 2011-12. One of the best performing non-bank financial service providers in 2012-13, First Capital Holdings comprises of First Capital Limited, First Capital Treasuries Limited, First Capital Markets Limited and First Capital Asset Management Limited. The group raised a noteworthy Rs. 6 billion for a diverse group of clients through commercial paper, debentures and securitisations in the year reviewed.
The group has recently acquired a 70% stake in a stock broking firm and states that this should enhance its revenue stream from equity based businesses in 2013/14.
The financial statements (unaudited) of the company for the year ended 31 March 2013 have been prepared and presented in accordance with new volume of Sri Lanka Accounting Standards (SLFRS/LKAS) which has become applicable for financial periods beginning on or after 1 January 2012.
source - www.ft.lk
While active trading strategies in the Government securities market generated a gain of Rs. 300 million in the review period, net interest income of Rs. 295 million and fee income of Rs. 40 million enabled the group to quadruple net operating income (before expenses) to Rs. 638 million.
Higher business volumes resulted in a doubling of turnover, and the group, which comprises of four financial services companies, posted profit before tax of Rs. 548.7 million for the year, as against a pre-tax loss of Rs. 253.6 million for 2011-12.
Profit attributable to equity holders of the parent company reached Rs. 490.1 million from a negative Rs. 259.9 million a year previously.
“Clearly, the strength of our capital base, which enables us to carry appropriate long term positions on Government securities, generates above average returns from our primary dealership,” said Jehaan Ismail, CEO of First Capital Holdings. “But we have also generated a noteworthy return from the corporate debt market and are making a name as a full service investment bank.”
He said the group had strengthened its management team in key disciplines during the year under review and moved its offices to a more conveniently located downtown address in Colombo to better serve its growing client base.
Consequent to its significantly improved performance, earnings per share of First Capital Holdings increased to Rs. 4.84 from a loss per share of Rs. 2.57 in 2011-12. One of the best performing non-bank financial service providers in 2012-13, First Capital Holdings comprises of First Capital Limited, First Capital Treasuries Limited, First Capital Markets Limited and First Capital Asset Management Limited. The group raised a noteworthy Rs. 6 billion for a diverse group of clients through commercial paper, debentures and securitisations in the year reviewed.
The group has recently acquired a 70% stake in a stock broking firm and states that this should enhance its revenue stream from equity based businesses in 2013/14.
The financial statements (unaudited) of the company for the year ended 31 March 2013 have been prepared and presented in accordance with new volume of Sri Lanka Accounting Standards (SLFRS/LKAS) which has become applicable for financial periods beginning on or after 1 January 2012.
source - www.ft.lk
Mixed week for bourse
Stock Market Review for the Week Ended 31st May 2013:
Colombo Bourse has displayed mixed signals during the week ended 31st May while hovering around the 6,500 ASI figure. Towards mid-week we witnessed the market recovering from its initial movement with turnover rising to its highest on Thursday in more than three weeks as conglomerate Hemas Holdings PLC bought a majority stake in pharmaceutical firm J. L Morrison Sons and Jones PLC.
To re-cap, starting from Monday; the Colombo Bourse slipped from a 19 month high on profit taking as the main ASI index dropped by 42.31 index points (0.65%) to close at 6,446.54 and S&P SL 20 Index lost 24.13 points to close at 3,641.91. Market turnover for the day was recorded at LKR 697mn whilst the market capitalization for Monday was LKR 2476 bn. Foreign participation was comparatively low and it calculated for 14.8% of the total market activity with a net inflow of LKR 113mn as the market turnover was recorded at a dismal LKR 553mn.
ASI lost 11.84 points and closed at 6,434.70 while the more liquid S&P SL 20 Index lost 14.95 points and closed at LKR 3,626.96 on Tuesday. Foreign participation remained sluggish and accounted for 12.7% as Tuesday ended while a net inflow of LKR 75mn was recorded for the day. Market capitalization for Tuesday stood at LKR 2413 Bn.
Colombo Stock market headed towards a recovery on Wednesday as the main index ASI rallied ahead by 21.11 points to close at 6,455.81 and S&P SL 20 Index advanced by 17.68 points to close at 3,644.64. Daily market turnover was LKR 906mn as foreign participation for the day was 21% of the total market activity as investors continued to act as net buyers with a net inflow of LKR 102mn.
Colombo Bourse on Thursday mimicked Wednesday’s ASI figures with ASI closing at 6,455 points and the S & P SL 20 index declining marginally to close at 3,640 points. Daily market turnover was a staggering LKR 2.55 Bn, an increase by 182 % from the previous trading day. Market capitalization stood at LKR 2478 Bn as a net foreign inflow of LKR 165 Mn was recorded for the day, an increase of over 60% from Wednesday. Ceasing trading for this week the Colombo Stock Exchange edged up 7.94 points on the main ASI index closing at 6,463.06 points while the more liquid S &P SL 20 increased by 6.28 points to close at 3,646.32. Market turnover for the day was recorded at LKR 731 Mn while foreigners remained as net buyers for the day with a net foreign influx of LKR 118 Mn.
Subsequently on Monday, the Colombo Bourse market capitalization depreciated by 1% due to profit taking by investors after a two-day consecutive growth experienced during the previous week. Investors booked profits in small volumes while lacklustre trading was made on blue-chips. Price depreciation was witnessed in Index heavy counters such as Dialog Axiata by LKR 0.40, Nestle by LKR 21.50 and John Keells Holdings by LKR 4.80 contributing to the negative market sentiment. Overseas Reality, Chevron Lubricants and Ceylinco Seylan Development were among heavily traded stocks during the day.
The Banking, Finance and Insurance sector contributed to drag the Colombo Stock Exchange down to a near one week low as investors were engaged in profit taking from recent gains in banking shares. Price reductions in index heavy stocks such as Bukith Darah by LKR 13.90, Carsons by LKR 2.50 and Commercial Bank by LKR 1.00 contributed negatively to the prevailing negative sentiment.
Market giant John Keells Holdings however edged up by 0.3% to close at LKR 289.00 as posted a 23% gain in its March quarterly earnings. Colombo Land & Development with LKR 42.5mn topped the turnover list today as Central Investment & Finance, Overseas Reality and Morisons non-voting were among the heavily traded stocks.
Indices gradually turned the Colombo Bourse back to green on Wednesday despite a few dips. Foreign investors displayed a selling sentiment due to Nation Lanka Finance (CSF) foreign stake in the counter reduced by 1,335,470 shares; as the price of the counter gaining 17% closed at LKR 11.70. Nation Lanka inevitable topped the turnover list adding LKR 107 Mn to the daily turnover whilst dominating the volumes list with 9.2 Mn shares.
Indices continued to fluctuate for the day on Thursday while transactions pertaining to J.L Morrison Sons and Jones (MORI) captured 61% of total turnover as the price closed at LKR 346.20 gaining 10.71%. MORI managed to strike the deal through eight crossings as Hemas Holdings PLC was rounded up as the majority stakeholder. Foreign interest was witnessed in Lanka Floor Tiles whereas the foreign stake in said counter increased by 1,166,400 shares. On Friday, notably Chevron Lubricants appreciated in value by 3.41% to close at LKR 331. Banks, Finance and Insurance sector contributed most to the daily turnover by contributing LKR 219 Mn for the day. Several crossings by Commercial Bank, Aitken Spence and Lanka Floor Tiles aided to the total turnover while Chevron Lubricants touched its 52 week high on Friday closing at LKR 328.30.
(Courtesy: Innovest Investments Pvt Ltd – an Investment Management Company licensed by the Securities & Exchange Commission of Sri Lanka)
source - www.ft.lk
Colombo Bourse has displayed mixed signals during the week ended 31st May while hovering around the 6,500 ASI figure. Towards mid-week we witnessed the market recovering from its initial movement with turnover rising to its highest on Thursday in more than three weeks as conglomerate Hemas Holdings PLC bought a majority stake in pharmaceutical firm J. L Morrison Sons and Jones PLC.
To re-cap, starting from Monday; the Colombo Bourse slipped from a 19 month high on profit taking as the main ASI index dropped by 42.31 index points (0.65%) to close at 6,446.54 and S&P SL 20 Index lost 24.13 points to close at 3,641.91. Market turnover for the day was recorded at LKR 697mn whilst the market capitalization for Monday was LKR 2476 bn. Foreign participation was comparatively low and it calculated for 14.8% of the total market activity with a net inflow of LKR 113mn as the market turnover was recorded at a dismal LKR 553mn.
ASI lost 11.84 points and closed at 6,434.70 while the more liquid S&P SL 20 Index lost 14.95 points and closed at LKR 3,626.96 on Tuesday. Foreign participation remained sluggish and accounted for 12.7% as Tuesday ended while a net inflow of LKR 75mn was recorded for the day. Market capitalization for Tuesday stood at LKR 2413 Bn.
Colombo Stock market headed towards a recovery on Wednesday as the main index ASI rallied ahead by 21.11 points to close at 6,455.81 and S&P SL 20 Index advanced by 17.68 points to close at 3,644.64. Daily market turnover was LKR 906mn as foreign participation for the day was 21% of the total market activity as investors continued to act as net buyers with a net inflow of LKR 102mn.
Colombo Bourse on Thursday mimicked Wednesday’s ASI figures with ASI closing at 6,455 points and the S & P SL 20 index declining marginally to close at 3,640 points. Daily market turnover was a staggering LKR 2.55 Bn, an increase by 182 % from the previous trading day. Market capitalization stood at LKR 2478 Bn as a net foreign inflow of LKR 165 Mn was recorded for the day, an increase of over 60% from Wednesday. Ceasing trading for this week the Colombo Stock Exchange edged up 7.94 points on the main ASI index closing at 6,463.06 points while the more liquid S &P SL 20 increased by 6.28 points to close at 3,646.32. Market turnover for the day was recorded at LKR 731 Mn while foreigners remained as net buyers for the day with a net foreign influx of LKR 118 Mn.
Subsequently on Monday, the Colombo Bourse market capitalization depreciated by 1% due to profit taking by investors after a two-day consecutive growth experienced during the previous week. Investors booked profits in small volumes while lacklustre trading was made on blue-chips. Price depreciation was witnessed in Index heavy counters such as Dialog Axiata by LKR 0.40, Nestle by LKR 21.50 and John Keells Holdings by LKR 4.80 contributing to the negative market sentiment. Overseas Reality, Chevron Lubricants and Ceylinco Seylan Development were among heavily traded stocks during the day.
The Banking, Finance and Insurance sector contributed to drag the Colombo Stock Exchange down to a near one week low as investors were engaged in profit taking from recent gains in banking shares. Price reductions in index heavy stocks such as Bukith Darah by LKR 13.90, Carsons by LKR 2.50 and Commercial Bank by LKR 1.00 contributed negatively to the prevailing negative sentiment.
Market giant John Keells Holdings however edged up by 0.3% to close at LKR 289.00 as posted a 23% gain in its March quarterly earnings. Colombo Land & Development with LKR 42.5mn topped the turnover list today as Central Investment & Finance, Overseas Reality and Morisons non-voting were among the heavily traded stocks.
Indices gradually turned the Colombo Bourse back to green on Wednesday despite a few dips. Foreign investors displayed a selling sentiment due to Nation Lanka Finance (CSF) foreign stake in the counter reduced by 1,335,470 shares; as the price of the counter gaining 17% closed at LKR 11.70. Nation Lanka inevitable topped the turnover list adding LKR 107 Mn to the daily turnover whilst dominating the volumes list with 9.2 Mn shares.
Indices continued to fluctuate for the day on Thursday while transactions pertaining to J.L Morrison Sons and Jones (MORI) captured 61% of total turnover as the price closed at LKR 346.20 gaining 10.71%. MORI managed to strike the deal through eight crossings as Hemas Holdings PLC was rounded up as the majority stakeholder. Foreign interest was witnessed in Lanka Floor Tiles whereas the foreign stake in said counter increased by 1,166,400 shares. On Friday, notably Chevron Lubricants appreciated in value by 3.41% to close at LKR 331. Banks, Finance and Insurance sector contributed most to the daily turnover by contributing LKR 219 Mn for the day. Several crossings by Commercial Bank, Aitken Spence and Lanka Floor Tiles aided to the total turnover while Chevron Lubricants touched its 52 week high on Friday closing at LKR 328.30.
(Courtesy: Innovest Investments Pvt Ltd – an Investment Management Company licensed by the Securities & Exchange Commission of Sri Lanka)
source - www.ft.lk
Sunday, June 2, 2013
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