Sri Lanka’s LOLC records historic profits in country’s corporate sector
Sri Lanka’s LOLC Group, which is a globally diversified financial conglomerate, has reportedly posted a record-breaking performance for the financial year ending 31 March 2021, achieving Rs. 57 billion in profit before tax (PBT), and a profit after tax (PAT) of Rs. 53 billion. Local media reports have stated that it is a first for any corporate in the country.
By achieving profits on this massive scale in the history of Sri Lanka’s corporate world, the group once again consolidated its position as the top-most profitable diversified corporate in the country, three years in a row – establishing LOLC as one of the largest micro, small, and medium enterprise (MSME) platforms in the world, local news reports stated.
This performance by LOLC has resulted in Rs. 28 billion being recorded as profits attributable to the equity holders of the parent company.
The group results have denoted an impressive earnings per share of Rs. 59.01 compared with Rs. 22.93 recorded in the previous year. Whereas, the total comprehensive income was Rs. 81 billion, out of which Rs. 37 billion is attributable to the equity holders of the parent company, the company has stated in a release. Furthermore, the total attributable comprehensive income per share was Rs. 77.84. The resultant net assets value per share as at the year-end was Rs. 286.23 compared to Rs. 194.72 reported last year, demonstrating the exceptional value creation by the group during the concluded financial year.
According to reports, having established a high-performance microfinance business model, LOLC had rapidly exported its expertise to global markets such as Cambodia, Myanmar, Indonesia, the Philippines, and Pakistan in Asia as well as Zambia and Nigeria in East and West Africa, bringing prosperity to people at the bottom of the pyramid. In addition, the group has established its footprint in the Maldives and Sierra Leone in the arena of non-financial services.
In Sri Lanka, the LOLC Group has reportedly diversified into agriculture and plantations, leisure, renewable energy, construction, manufacturing and trading, information services, as well as research and innovation over and above its flagship financial services.
OSL take:
The historic profits recorded by the Sri Lankan conglomerate despite facing the impact of the global Covid 19 pandemic is indicative of the strength and growth of the country’s economy. 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 the Covid 19 pandemic. The island is now 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. Foreign businesses/investors could therefore confidently explore business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/04062021/Z_1 |