Sri Lanka’s listed companies’ earnings record Rs. 100 billion milestone
A Sri Lankan stockbroking company has reportedly stated that the country’s listed companies had witnessed another landmark as first quarter earnings had crossed the Rs. 100 billion milestone for the first time in the history of the Colombo Stock Exchange. This was stated by Softlogic Stockbrokers in their analysis of earnings in 1Q of the calendar year 2021.
Softlogic Stockbrokers has reportedly stated that the growth was a monumental 189% YoY compared to the corresponding quarter the previous year.
Recording its best quarterly earnings performance in history of over Rs. 109 billion, the total reported earnings tally for the past six months reached Rs. 195 billion and Rs. 285 billion on a Trailing 12 months (TTM) basis.
“It is commendable that the growth momentum comes despite the period being stricken by two waves of COVID-induced lockdowns, which severely impacted mobility and overall economic activity,” Softlogic Stockbrokers has been quoted as saying.
It has further stated that the growth is testament to the favourable climate for local companies during the post-lockdown period backed by import protectionism, economic stimulus and USD depreciation, which proved to benefit local industries and export segments whilst pent-up demand helped play a further role in strengthening the earnings performance.
According to local media reports, the broking firm had also said earnings momentum continued from its depressed state during the first wave of COVID-19, to record a 462% growth 2Q 2020 and a 28% growth from 4Q 2020 – the quarter that was affected by the second wave.
“A deeper analysis of earnings confirms the thesis that corporates are becoming better equipped to handle lockdowns as it makes its transition into the new normal, whilst the opening up of the economy provides an instant boost following an extended lockdown period,” Softlogic Stockbrokers has added.
The recorded milestone is indicative of the strength and growth of the country’s economy while facing the challenges posed by the global Covid 19 pandemic. Sri Lanka’s economy has shown great resilience to external and internal challenges through the years and is once again on the path to recovery after facing the impact of Covid 19. The country is currently engaged in an aggressive development programme while working to improve the ease of doing business environment. Sri Lanka is fast becoming a business hub in the South Asian region given it’s geographical positioning in the Indian ocean and the many trade agreements as well as trade concessions enjoyed by the country. Given the expanding business potential in Sri Lanka, foreign businesses/investors could explore business/investment opportunities in the country.
|Article Code :||VBS/AT/20210617/Z_1|