Business

First Capital books billion rupee profit after tax in record breaking year

Published

5 years ago

2020/10/4

Results, helped by monetary policy easing, achieved against negative headwinds

First Capital Holdings PLC (FCH), a Janashakthi company, reported its best ever performance in the year ended Mar. 31, 2020 with its profit after tax topping the billion rupee mark, up from Rs. 8 million the previous year.

The company’s chairman, Mr. Nishan Fernando, said in a statement in the company’s recently published annual report that the record breaking performance was without doubt the best year to date, with the group’s impressive performance achieved against some obviously negative headwinds that saw the country posting what he called “sub-par economic growth” for the third consecutive year.

“Our ability to deliver consistent results even in tough times, is a testament to the group’s robust operating model,” Fernando said. “I am also convinced that the ongoing emphasis placed on strengthening each of our core businesses and firming up their positions within their immediate operating domain, has been a critical success factor for the group.

FCH is a full service investment bank providing a diverse range of advisory services and financial products. Its specialties include Capital Market Advisory, Wealth Management, Fixed Income and Equities serving an array of companies, institutions, government agencies, high net worth individuals and retail clients.

The superior performance enabled the company to pay its shareholders a total dividend of nine rupees per share for the year under review comprising a first interim of four rupees per share in Aug. 1919 and a second interim of five rupees per share in in June 2020 with a total dividend payout of Rs. 911.2 million.

Fernando said the outstanding performance was supported by a demonstrable improvement across all key metrics with revenue up to Rs. 5.22 billion from Rs. 4.17 billion a year earlier.

Operational highlights included channeling Rs. 336 billion worth of government securities to the public; assets under management reaching Rs. 26.4 billion; Rs. 42 billion raised through corporate debt structuring and placement; and Rs. 7.2 billion raised for listed debt IPOs.

He said he was particularly pleased with the performance of their primary dealer operation – First Capital Treasuries PLC, as a result of the Central Bank’s monetary policy easing in the latter part of 2019.

Focusing mainly on the unlisted debt market, their Corporate Advisory Unit leveraged on the opportunity to re-enter the listed debenture space after three years raising approx Rs. 7.25 billion by way of listed debentures.

Their wealth management unit had also made remarkable progress to deliver the best financial results to date. The wealth management clientele had shown a degree of maturity during the year for which he credited their efforts to raise market awareness.

He expected the Covid-19 pandemic will continue to dictate the country’s medium term economic outlook. Based on the assumption that at the very least, the existing monetary policy easing measures will remain in effect, he expected their group “to benefit from a highly conducive environment.”

The company’s Director/CEO Dilshan Fernando said that a continuation of the current monetary policy slant at least for the forthcoming financial year will benefit their group with the low interest rates offering strong growth potential. He also saw the opportunity to expand their corporate advisory services as businesses restructure in the post-Covid era.

“Also, as the equity market bottoms out, there is likely to be renewed interest in investing, especially from foreign investors over the coming months,” he said. “This will no doubt boost the prospects of our stock broking arm.”

The Janashakthi Groups owns over 75% of First Captal.

The company’s directors are Messrs. Nishan Fernando (Chairman – Independent non-executive) Dinesh Schaffter (MD) Dilshan Wirasekera (Director/CEO) Prakash Schaffter and Ramesh Schaffter (Non-independent, non-executive), Eardley Perera, Minette Perera, Chandana de Silva and Nishan de Mel (Independent non-executive directors).

All News Advertisement

Business

‘Trailblazing moment’ for New Zealand-SL bilateral economic ties

Published

16 hours ago

2025/11/7

Thilina Walpola

New Zealand H.C. David Pine

The landmark announcement of JAT Holdings’ acquisition of Mirotone (NZ) Ltd, New Zealand’s No. 1 industrial wood-coatings company, took place on Nov. 4th at ITC Ratnadipa, drawing leading diplomats, business leaders and industry stakeholders. The event was seen as a “trailblazing moment” for New Zealand- Sri Lanka bilateral economic ties by New Zealand’s High Commissioner to Sri Lanka David Pine.

New Zealand’s High Commissioner Pine, delivering the keynote remarks, went on to describe the acquisition as “a powerful example of responsible foreign investment; strengthening a proud New Zealand brand.”

“What we really want to see a lot more of in New Zealand—just like every other country—is high-quality foreign investment, Pine said. “And just as important is ensuring companies that have done well for decades find responsible new owners, especially after challenging periods.”

He said the acquisition was “preserving and strengthening a New Zealand company that deserved a secure future” and added:

“This is the most significant investment to date by a Sri Lankan company in New Zealand. I hope we will look back on this night—and on you, Aelian, and your team—as trailblazers.”

Aelian Gunawardene, Founder and Managing Director of JAT Holdings, said that throughout his travels across Asia and Australia, one brand consistently stood out—Mirotone, seen as a respected and dominant name in Australia, New Zealand, Malaysia, Singapore and beyond.

“For nine decades, this company led the wood-coating industry in the Asia-Pacific region, he said. “It was a brand I admired, benchmarked and looked up to. Today, to be its custodian feels almost unreal.”

He recalled the intense negotiations—early morning calls, late-night meetings, and the JAT board’s approval of a USD 3 billion allocation to acquire a top-tier international coatings brand.

“This isn’t just about growth, Gunawardene added. “It’s about joining hands with a 90-year-old legacy of craftsmanship and innovation.”

He expressed gratitude to the original founders and said JAT looked forward to celebrating the brand’s 100th anniversary in 2035.

JAT Holdings CEO Nishal Ferdinando walked stakeholders through the strategic transformation the acquisition will unlock over the next 24–30 months.

He emphasised JAT’s groundbreaking R&D capabilities, including South Asia’s first water-based wood-coating binder, developed by only four companies globally.

By Ifham Nizam

Business

Sampath Bank and Ideal Motors partner to drive affordable vehicle ownership in Sri Lanka

Published

16 hours ago

2025/11/7

Thilina Walpola

Kasun Fernando, General Manager – Ideal Motors (Pvt) Ltd (fourth from left), and Deepal De Silva, Chief Operating Officer – Sampath Bank (fifth from right), exchange the MoU in the presence of officials from both organisations

Sampath Bank PLC recently signed a Memorandum of Understanding (MOU) with Ideal Motors (Pvt) Ltd., an authorised distributor of Mahindra vehicles in Sri Lanka. The partnership aims to offer customers enhanced vehicle financing solutions and exclusive benefits that make vehicle ownership more affordable and convenient.

Through this collaboration, Sampath Bank will extend a range of financial privileges to customers purchasing Mahindra vehicles from Ideal Motors. These include a 0.5% per annum reduction in the published leasing interest rates, loans to cover vehicle insurance premiums with no interest if settled within two months, and Sampath Credit Cards with no joining fee, enabling customers to pay their insurance premiums at 0% interest for up to 12 months.

Commenting on the partnership, Deepal De Silva, Chief Operating Officer, Sampath Bank PLC, said, “This partnership represents our commitment to delivering practical financial solutions that support our customers’ lifestyle aspirations. The collaboration with Ideal Motors enables us to offer more accessible financing and flexible repayment options, empowering individuals and businesses to make confident vehicle ownership decisions. It also reflects our broader vision of being a trusted financial partner that continuously anticipates and responds to customer needs.”

Expressing her thoughts on the partnership, Ms. Nimisha Welgama, Director – Legal and Corporate Affairs, Ideal Motors (Pvt) Ltd., said, “We are pleased to collaborate with Sampath Bank to offer customers a selection of Mahindra vehicles complemented by attractive financing options, enhancing both value and the overall ownership experience.”

Business

Positive corporate earnings driving CSE’s bull-run; ASPI hits 23,000 points

Published

16 hours ago

2025/11/7

Thilina Walpola

The CSE kicked off on a bullish note yesterday because the All Share Price Index topped the 23000 points level mainly due to positive corporate earnings amid conducive macroeconomic conditions in the county.

The All Share Price Index went up by 158.99 points while the S and P SL20 rose by 57.10 points.

Turnover stood at Rs 6 billion with ten crossings. Top seven crossings were reported in Laugfs Gas where 3.95 million shares crossed for Rs 276.7 million; its shares traded at Rs 67.50, Hemas Holdings 4.9 million shares crossed for Rs 172 million; its shares traded at Rs 31, JKH 7.75 million shares crossed for Rs 168.5 million; its shares traded at Rs 20.90, NTB 450,000 shares crossed for Rs 135 million; its shares sold at Rs 300, People’s Leasing and Finance 2 million shares crossed for Rs 58 million; its shares traded at Rs 29, Commercial Bank 200,000 shares crossed for Rs 41.6 million; its shares sold at Rs 208 and HNB 90000 shares crossed for Rs 35.8 million; its shares fetched Rs 396.

In the retail market top seven companies that mainly contributed to the turnover were; Colombo Dockyard Rs 451.3 million (one million shares traded), Laugfs Gas 304 million (4.5 million shares traded), JKH Rs 260 million (11.97 million shares traded), Sierra Cables 231 million (7.6 million shares traded), Sunshine Holdings Rs 231 million (5.6 million shares traded), NDB Rs 203 million (1.4 million shares traded) and Digital Mobility Solutions Rs 196 million (1.2 million shares traded). During the day 187 million share volumes changed hands in 43220 transactions.

It is said that the banking and finance sector performed well, especially NTB, while the manufacturing sector also performed well, especially JKH, Hemas and several other companies. IT sector also performed well.

Yesterday the rupee was trading weaker at Rs 304.80/305.00 to the US dollar in the spot market from 304.55/80 on Tuesday, dealers said, while bond yields dropped by about 3-4 basis points.

By Hiran H Senewiratne