Sri Lanka’s Prime Lands Residencies ends FY21 on exceptionally high note
Sri Lanka’s Prime Lands Residencies Plc has reportedly ended FY21 on an exceptionally high note with impressive gains on top line and bottom line.
As per results announced on Tuesday (27), Prime Lands Residencies’ revenue for the year ended on 31 March 2021 was Rs. 7.7 billion, up by 35% from the previous year and after tax profit soared by 656% to Rs. 989.2 million from Rs. 131 million in FY20 while pre-tax profit had increased by 603% to Rs. 1.27 billion, according to local media reports.
Gross profit growth was 24% as against 19% in FY20.
The company, which listed last month following a successful initial public offering (IPO), has reportedly distributed Rs. 375 million as the first interim dividend of 40 cents per share, to shareholders on FY21 profit. The Earnings Per Share was Rs. 1.32, up from Rs. 0.17 in FY20.
It’s Rs. 1.95 billion IPO had drawn 2,323 applications requesting for shares worth Rs. 2.25 billion.
According to local media reports, Prime is a well-respected brand name in Sri Lanka and Prime Group is the first and only Sri Lankan real estate group to secure an issuer rating of (SL)A- from ICRA Lanka.
Prime Lands Residencies was created in 2016 by amalgamating Prime Homes International, Prime Homes Ltd. and Living Homes Ltd. to focus on envisioning, creating and selling affordable luxury housing projects in the main cities around the country, under the brand name ‘Prime Residencies’ together with high end and ultra-luxury condominiums located in the heart of the Colombo, local media reports stated.
Total assets have amounted to Rs. 13 billion, marginally down from Rs. 13.5 billion. Retained earnings have grown to Rs. 1.93 billion from Rs. 942 million. Total equity has grown from Rs. 2.4 billion to Rs. 3.4 billion, local media reports added.
OSL take:
Sri Lanka’s housing and property development sectors have shown a growth momentum despite challenges posed by the global Covid 19 pandemic. With Sri Lanka 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, these two sectors are likely to grow further with land values also being pushed high. Foreign businesses/investors could explore the growing opportunities in Sri Lanka’s housing and property development sectors and also look at forming partnerships/joint ventures with local businesses.
| Article Code : | VBS/AT/20210729/Z_2 |