Connect with us

Business

Commercial Leasing & Finance PLC (CLC) delivers exceptional nine-month interim financial results; on track to surpass profitability over 2019/20 by year-end

Published

on

Commercial Leasing & Finance PLC (CLC) delivered a powerhouse financial performance despite the wider economic and industry volatility caused by the COVID-19 pandemic. CLC recorded excellent numbers for the first nine months of the financial year ending 31st December 2020, despite challenging market conditions faced by the Non-Banking Financial Institution (NBFI) industry. Profit Before Tax grew to Rs. 2.3 Bn as at 31st December 2020, over the first nine months of the financial year under review. CLC recorded Profit After Tax of Rs. 1, 922 Mn, reflecting an increase of 65% over the previous year. Cost of funds reduced by 23% while overheads increased by only 3%. The Company’s performance is a result of excellent management of its Non-Performing Loans (NPLs) and cost of funds, while sustaining revenues by maintaining its product mix optimally.

 CLC’s low NPL ratio compared to the industry is a result of its well-secured asset base and superior credit quality. Maintaining low NPLs despite the adverse impact on the market during first and second waves of the pandemic is a testimony to strong customer relationships the Company has built.

 Further, CLC’s total assets exceeded Rs. 72.2 Bn during the period under review, making it one of the largest NBFIs in the country. CLC’s portfolio is well-diversified into all sectors of the economy – spanning auto finance, agri finance, SME finance, microfinance, Islamic Finance, gold loans, and receivable finance through factoring.

 Equally significant is the growth of its deposit base by 19% during the period under review which reflects public confidence in the Company’s financial stability. CLC’s capital base exceeded Rs. 21 Bn as at December 2020, recording a 19% increase, which is far above the regulatory requirement with a Tier One capital ratio of 20.95% against Central Bank of Sri Lanka’s mandatory level of 6.5% and with Tier Two capital at 20.13% as against the regulatory requirement of 10.5%.

 Expanding further, CLC Executive Director/CEO Krishan Thilakaratne said, “Our excellent nine-month performance is a result of top notch credit quality maintained over the years. We are optimistic about ending the financial year with even stronger results. Looking ahead, we plan to further expand our branch network by 15 more branches in the next financial year in order to leverage the high equity and brand value enjoyed by CLC across the country.”

 As a further testimonial to its robust financial performance, CLC was reaffirmed as SL (A) stable by ICRA Lanka Ltd., which reaffirms its stability for customers.   

 Commenting on the exceptional nine-month financial results, CLC Chairman Priyantha Fernando said, “CLC has recorded exceptional Profit Before Tax (PBT) and Profit After Tax (PAT) over the last 10 years – and in the same vein, we expect to close the 2020/21 year with a PBT between Rs. 3.2 Bn to 3.5 Bn, which is an impressive achievement under the dismal market conditions – as indicated by these sound nine-month results.  The GDP has been on the decline since the Easter Sunday attacks in 2019, further exacerbated by the COVID-19 outbreak, but despite the economic slowdown CLC has displayed resilience by putting in place pillars critical for sustained growth.



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Aitken Spence invests in yet another renewable energy project in hydropower

Published

on

Dr. Parakrama Dissanayake – Deputy Chairman and Managing Director Aitken Spence PLC accepting the share transfer form from Harsha Abeywickrama – chairman Sunshine Energy Ltd; in the presence of Ms. Stasshani Jayawardena – Executive Director Aitken Spence PLC, Dr. Rohan Fernando – Executive Director Aitken Spence PLC, Ms. Nilanthi Sivapragasam – Chief Financial Officer Aitken Spence PLC and Leel Wickremarachchi – Managing Director of the power segment from Aitken Spence PLC. Shyam Sathasivam – Managing Director, Sunshine Energy Ltd. and Harin Udeshi – Director, Waltrim Energy Ltd.

Aitken Spence PLC recently acquired Waltrim Energy Limited, a subsidiary of Sunshine Holdings PLC for Rs. 900 million. The company contributes 6.6MW to the national grid via three mini hydropower plants located in the Nuwara Eliya district, namely of Waltrim Hydropower (Private) Limited, Upper Waltrim Hydropower (Private) Limited and Elgin Hydropower (Private) Limited. Waltrim hydropower draws energy from Kothmala Oya, Upper Waltrim hydropower and Elgin hydropower from Dambagasthwala Oya.

Aitken Spence expands its portfolio in hydropower in the pursuit of meeting rising energy demands, sustainable development, access to clean energy and lowering our national carbon footprint. This is the second hydropower plant which is owned and operated by Aitken Spence. Branford Hydropower (Pvt) Ltd. is the other hydropower plant with a 2.5MW capacity located in Matale. The company also owns and operates a wind power plant with 3MW capacity located in Ambewela.

“This is yet another investment made by Aitken Spence that shows our commitment to expand the power generation portfolio with renewable energy projects. Hydro power plays a key role in renewable energy segment in Sri Lanka and this initiative strengthens the country’s efforts to move towards cleaner energy sources and effective and efficient management of sustainable and affordable generation of energy supplied to the national grid,” commented Dr. Parakrama Dissanayake, Deputy Chairman and Managing Director of Aitken Spence PLC.

“Aitken Spence maintains highest environmental, safety and quality standards in the management of our power plants. These stringent management frameworks will be extended to the newly acquired power plants to meet compliance requirements as well as global benchmarks for cleaner production of energy,” added Leel Wickremarachchi, Managing Director of the power segment of Aitken Spence.

The Power segment of Aitken Spence is a leading player in the sector with a reputation for investing in pioneering technologies and has diversified into renewable energy by establishing hydro power and wind power plants to support Sri Lanka’s demand for energy. With their commitment to increase the country’s energy consumption from renewable energy sources, the company recently introduced Sri Lanka’s first waste to energy power plant that was officially launched in February 2021. Moreover, these initiatives are in line with the collective efforts of government and the private sector to produce clean energy sustainably.

 

 

Continue Reading

Business

Best Woman Entrepreneur at Entrepreneur Awards 2020

Published

on

Christell Skin Clinic proved their mettle as industry leaders yet again, by clinching the three topmost awards at the recently held Western Province Entrepreneurship Awards Ceremony 2020. The highly-anticipated annual event -jointly organised by the National Enterprise Development Authority (NEDA) and the National Chamber of Commerce of Sri Lanka- took place this year at the BMICH.

The event brought together industry leaders and newcomers with the aim to recognise and honour micro, small, medium and large sector entrepreneurs that have contributed significantly to Sri Lanka’s service sector over the past year.

The country’s leading aesthetics and wellness centre took home The Best Enterprise service sector trophy, as well as the Best Entrepreneur of the Year award – the most sought-after prize of the night. More notably however, the Best Woman Entrepreneur title was awarded to the director of the Christell Skin Clinic, Dr. Shanika Arsecularatne, in recognition of her inspirational journey to becoming one of the most successful businesswomen in the country, and also of her outstanding contribution to the field of cosmetology and wellness in Sri Lanka.

“I’m truly honoured to receive this recognition, especially because I believe that no one receives an award like this out of sheer luck, but rather in acknowledgement and appreciation of the hard work, sleepless nights and sacrifices we have all made, to be where we are today,” said Dr. Arsecularatne on accepting her award.

Continue Reading

Business

Plastic Modified Asphalt Concrete car park in Sri Lanka

Published

on

The car park of the Walgama Food City with its new “Paving with Plastic”

As a socially responsible corporate citizen, Cargills holds a strong commitment to serving the nation and preserving the planet for future generations. By partnering with AGC Innovate Pvt Ltd – one of the country’s leading innovative solutions providers – Cargills initiated the launch of “Paving with Plastic” as a means to address Sri Lanka’s plastic waste menace in an ecofriendly and pragmatic approach.

The benefits of plastic are irrefutable – this versatile material is ubiquitous in our everyday lives, due to it being cheap and convenient to produce as well as being highly durable and user friendly. However, once used and disposed, plastic lingers in the environment for too long and does not decompose.

As a result, the inherent problem of plastic pollution is a global crisis, with Sri Lanka generating approximately 7000 metric tons of mismanaged solid waste daily, with 6% accounting for plastic and polythene waste. Therefore, in the absence of a proper waste management system, non-recyclable plastic is dumped in large landfill sites. These sites are now exceeding their maximum capacity, and has led to pressing environmental and social concerns in the country.

As a first step to tackling this waste plastic problem, Cargills made a landmark decision to pave the Cargills Food City Carparks using Plastic Modified Asphalt Concrete, partnering with AGC Innovate.

Continue Reading

Trending