Bottom line turns positive in 3Q posts profit before and after tax compared to loss a year earlier but still not out of the woods with loss in first 9 months Group turnover up 11% to
22.2 b in 3Q Cumulative Group EBITDA improved 25% to near
4.2 b led by increasing activity levels, improving profit margins and cost discipline measures One of the leading diversified groups
However at the cumulative first nine months level,
52 million, as against a loss of
It was the first time in FY20 the bottom line turned positive. Loss for the first nine months was Rs.
1.46 billion, as against a profit of Rs.
75 million a year earlier. Despite the business environment operating under a cloud, PBT for the three-month period was Rs.
305 million as opposed to a loss of
393 million (a loss of
For the nine months pre-tax loss was
618 million and post-tax loss was
2 billion.
59.4 billion during the first nine months of this financial year while quarterly revenue improved 14% to
"Group turnover was dominated by the rapidly expanding Retail sector (51% contribution to Group topline), Financial Services (20%) and
In the same way, the healthcare sector, with the addition of Asiri's 190-bed ultra-modern hospital in Kandy, will have an important role to play in the country's healthcare serving the healthcare needs of the
Nonetheless, he pointed out that the new Government's pro-business decision to reduce the tax burden for corporates while also reducing interest rates will give a significant fillip to future earnings.Gross Profit grew 11% to Rs.
21.7 billion during the 1-3QFY20. The quarter reported a Gross Profit of
4 billion (up 15%) maintaining GP margins at 38% amidst
1 billion with the cumulative figure rising 10% to
7 billion. Administrative expenses increased 10% to Rs.
13 billion during the nine-month period while a marginal decline was noted during the quarter (
7 billion). The increasing scale of operations accounted for the cost increases with depreciation of PPE and headcount increase making up most of this cost.
Cumulative operational costs increased 10% to
Quarterly operational costs was flat at
7 billion to record an operating cost margin improvement from 29% in 3QFY19 to 26% in 3QFY20. Focusing on cost discipline and economies of scale helped achieve the cost margin improvements amid our expansions.Other operating income declined marginally by 9% to Rs.
528 million during 1-3QFY20 while the quarter also witnessed a decrease of 32% to
Cumulative Group EBITDA improved 25% to near
2 billion primarily led by increasing activity levels, improving profit margins and cost discipline measures.Operating profit for the cumulative period increased 12% amounting to Rs.
6.5 billion while the quarterly operating profit grew 50% to Rs.
2.9 billion primarily supported by increased activities and cost controls which led to the operating profit margin improving from 10% in 3QFY19 to 13% in 3QFY20.Finance income is primarily made up of the gains of
Finance income for 1-3QFY20 increased 60% to
4 billion while quarterly finance income increased 14% to
Net finance costs increased 23% to
9 billion for the quarter while the cumulative period saw an increase of 35% to
1 billion."
We are seeking longer term funding options and quasi-equity to relieve the finance cost burden to enhance earnings," Chairman Pathirage said in his review accompanying interim results.The quarter witnessed a transfer of Rs.
707 million to life policy holders (up 10%) while a transfer of
5 billion (up 1%) during the nine-month period to build a conservative actuarial book.
© Pakistan Press International, source