Arpico Finance posts Rs 25 m profit
Arpico Finance Company (PLC) recorded growth, its Chairman
Pratapkumar de Silva, said.
"Overall profitability as measured by pre and post tax profits was Rs
36.2m and Rs 25m respectively," he said.
In comparison to the preceding year the above statistics recorded
growth rates of respectively 289 percent and 114 percent. This is
attributable to the efforts of the staff in pursuing the business plan
and also pro-business economic climate.
The taxation was a charge of Rs 11.1 m from an add back of Rs 2.4m in
the earlier year which resulted in a deceleration of the growth rate of
post tax profit. The gross income increased to Rs 425 m from Rs 352 m in
the preceding year.
The gross and net interest incomes recorded were Rs 380 m and Rs 176
m up from Rs 311 m and Rs 101 m respectively in the earlier year. The
improvement in margin is mainly attributable to the stable interest rate
regime which prevailed during the year and the favorable yield from the
micro credit portfolio.
The expenses increased from Rs 136 m to Rs 189 million by 39 percent.
Most part of the increase in expenditure relates to market development
efforts in the form of recruitment of marketing staff, opening up of
delivery channels, creating brand visibility and image.
Alfinco Insurance Brokers (Pvt) Ltd, which is the only associate of
the company paid a dividend of Rs 2.5 million for the year and
contributed Rs 5.2 million towards the consolidated profits of the
company. The company also took advantage of the gains in the Colombo
Stock Exchange and was able to post a profit of Rs 10.8 million from
its' dealings in listed securities.