Business
First Capital books billion rupee profit after tax in record breaking year
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).
Business
SL’s coconut price hike has roots in past erratic policies on fertilizer use – CDA chairman
By Ifham Nizam
Sri Lanka’s coconut industry is facing a significant crisis, with production levels plummeting from three billion nuts annually to just 2.85 billion nuts. Erratic policies of previous governments regarding fertilizer use have played a key role in precipitating this situation, Coconut Development Authority (CDA) chairman, Shantha Ranathunga said.
Speaking to The Island Financial Review, Ranathunga highlighted that the impact of foreign exchange fluctuations has led many farmers to neglect best practices in nurturing coconut trees, thus exacerbating the problem.
Ranathunga added: ‘Additionally, the industry is grappling with various diseases and pest infestations, often a result of insufficient care and oversight. Despite these challenges, the global market is witnessing an unexpected boom for local exporters. A shortage of coconut supplies in the Philippines and Indonesia has created opportunities for Sri Lankan exporters, who are now able to secure better prices for their products.
‘In response to the escalating global demand and prices for coconuts, including desiccated coconut, the government has begun implementing measures to facilitate imports of coconut kernel. This decision, which follows requests from major companies like Nestle and CBL, is intended to support the local export market.
‘A Cabinet paper is currently being prepared to grant exporters the authority to import any quantity of coconut kernel they require, thereby removing restrictions that have previously hampered supply.
‘We have concerns over the influence of a “coconut mafia,” which has manipulated local prices, resulting in retail costs soaring to Rs. 150-160 for coconuts purchased from estates at Rs. 90-100. To counteract this, we have urged state estates participating in the coconut auction at the CDA to set auction prices at a minimum of Rs. 105, aiming to curb excessive profits made by middlemen.
‘Furthermore, the CDA is taking steps to provide financial relief to farmers. A subsidy of Rs. 60,000 to 65,000 per acre—covering approximately 50 trees—will be available, financed from the CDA’s funds. This initiative aims to assist small farmers in acquiring the necessary fertilizers to boost coconut production.
‘With local coconut and coconut oil prices rapidly escalating, the urgency to stabilize the domestic market has never been greater. Rising global edible oil prices have compounded these issues, with refined coconut oil prices climbing from USD 1,320 to USD 1,880 per ton, while palm oil prices approach USD 1,250 per ton due to climatic impacts and increased international demand.’
Business
CEAT Kelani inspires top dealers with ‘Autobahn’ convention & awards gala
Hosts top 125 dealers and their families at two-day event at Cinnamon Grand and Port City
Sri Lanka’s leading tyre brand CEAT pulled out all the stops to felicitate and recognise top dealers at a two-day convention and awards gala at the Cinnamon Grand and the Port City recently, blending glitz and fun with an illuminating technical session.
Themed ‘Autobahn’ to reference the German engineering, research and development expertise that underpin the brand, the event revolved around Sven Rath, General Manager – Global Outdoor Testing at the CEAT Research & Development Centre in Frankfurt, Germany, who was present in person.
Delivering the welcome address at the awards dinner, CEAT Kelani Holdings Chairman Chanaka De Silva said that collectively, the 125 top dealers felicitated represent the heartbeat of the company and are a vital part of its success.
Pointing out that CEAT Kelani had achieved several significant milestones despite the challenges in the market, De Silva said the company had continued to grow, innovate and serve customers better than ever before, retained its status as the most-loved tyre brand in the country, and received an AA+ rating from Fitch for the fourth consecutive year in 2024.
CEAT’s top 10 dealers countrywide received handsome awards for their contributions to the Company’s performance while the top 45 dealers received awards of excellence, and the top performers in each of tyre categories manufactured by the company were recognised separately at the dealer convention. A noteworthy feature was the presence of representatives of two of CEAT’s top customers in two key export markets – Singapore and Egypt.
Top dealers honoured at the event received cash awards, gift vouchers, trophies and certificates in recognition of their performances in each of the product categories that CEAT manufactures, as well for overall excellence.
Business
ASHR Awards Day 2024
Kumon Dehiwala Learning Centre held its Annual Advanced Student Honor Roll (ASHR) Awards ceremony at the Bishops College Auditorium on the 03rd of November 2024 under the patronage of Yohei Nakagawa, Managing Director, Kumon India Sri Lanka, Guests of honour including Ms.Prerna Moitra- Area Development Manager (Kumon India Sri Lanka.
Bangalore South-Sri Lanka division, Principal Bishops College- Ms.Chemali Goonethikale Herath, Ms. Jalani Premadasa and the directress for Kumon Dehiwala Learning Centre Ms.Femidah Wahid. The occasion was graced by almost 700 participants including dignitaries from various industries.
The ASHR Awards ceremony celebrates students who have demonstrated exceptional academic excellence by surpassing studying content beyond their respective school grade levels by 6 months,2 years ,3 years and 5 years. This year, Kumon Dehiwala has produced 314 awardees including 35 Kumon programme completers- one of the highest numbers of award recipients across India- Sri Lanka. The ceremony also celebrated the receipt of the third international award for the year. The celebration also commemorated the 10 year journey of Kumon Dehiwala and the success stories of its alumni (124 program completers) -a moment of immense pride and reflection.
In recognition of the outstanding performance in 2024, the Kumon Dehiwala learning centre was presented with an Award of Excellence at the prestigious Kumon Asia Oceania (K.A.O) conference 2024. The centre was recognized as one of the top three centres for producing the highest number of programme completers for native language programme(across 2400 Kumon centres globally).
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