Business
SLT Group stays resilient for Q3 overcoming external impacts
Sri Lanka Telecom Group (SLT Group), the National ICT Solutions Provider, has reported positive overall revenues of Rs 79.6 Bn, a consolidated growth of 3.9% for the first nine months of 2022 compared to the same period last year, driven largely by prudent and proactive measures undertaken in financial and operational management.
Demonstrating resilience in its business model, at Company level, SLT Q3 revenues grew to Rs 16.9 Bn, an increase of 7.4% when compared to the same period last year, also reflected in optimistic year-to-date growth of 10.6% at Rs 49.4 Bn. SLT Group’s contribution to the Government of Sri Lanka during the first nine months of 2022 amounted to Rs. 21 Bn. in direct and indirect taxes including levies and dividends.
The Group’s Gross Profit growth for Q3 witnessed a marginal 0.8% increase at Rs 11.1 Bn, in comparison to the previous quarter. Weighing down growth, a negative 3.4% in Gross Profit at Rs 33.4 Bn was recorded for the first nine months of the year, compared to the same period last year. Group Profit After Tax (PAT) growth declined to 27.1% (QoQ) while year-to-date also reflected a downward momentum at 34.1%.
At Company level, SLT posted a positive a 9.3% Gross Profit increase of Rs 7.2 Bn for Q3, QoQ and ended the nine months of the year also in a similar trend of 7.1% at Rs. 20.4 Bn. Furthermore, at Company level, Profit Before Tax for the first nine months recorded a significant increase of 136.1% when compared with the same period last year, owing to a forex gain of Rs. 5.6 Bn. attributable to USD deposits, Dividend Income of Rs. 2.3 Bn. and Rs. 1.1 Bn. of Interest Income earned from USD deposits. PAT for the same period saw considerable growth of 82.8% at Rs 9.3 Bn mainly due to forex gains as a result of LKR devaluation, and dividend income received from subsidiaries. PAT growth for the Company in Q3 was a negative 76.6% compared to last quarter (QoQ).
SLT Group Chairman, Rohan Fernando said, “I am pleased to announce yet another quarter of positive, revenue growth for the Group. The resilience in our results is primarily due to management intervention in containing costs, the reduction in energy costs, consolidation of operations moving into company owned premises, and asset monetization subject to government policy being stable to attract FDIs. These results demonstrate how we continue to make tangible progress in delivering steady revenues despite 2022 being one of the most difficult periods in the history of Sri Lanka. The company is cautiously moving into the fourth quarter meeting all obstacles with a positive outlook.”
Company revenue growth was primarily driven by increases in Carrier Domestic, Broadband and Carrier International revenue streams. Carrier Domestic growth was predominantly from expansion in provision of Ethernet, international private leased circuit (IPLC) and internet leased line (ILL) services. Broadband saw revenue growth mainly from FTTH Broadband while Carrier International growth was chiefly due to USD appreciation. However, domestic interconnection revenue dropped as a result of a direction by the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) to reduce charges from April 2022 onwards.
Commenting on the future, the Chairman added, “The vision of the SLT Group of becoming a regional tech conglomerate will be pursued vigorously with the unified brand and consolidation of operations under one roof taking place gradually with the deployment of our state-of-the-art, high-tech, green building by the middle of 2023.”
The mobile services arm of the Group, Mobitel has experienced a revenue decline in Q3’ 22 against the same period in the previous year, impacted by macro-economic challenges, tax changes and reduction of domestic interconnect charges. Nonetheless, Mobitel sustained growth in international business revenues while productivity and efficiency enhancing initiatives in all areas also enabled the subsidiary to remain profitable within the industry.
Meanwhile, SLT Group’s EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) growth witnessed a marginal reduction of 1.3% in the first nine months of 2022, compared to the same period last year. However, at Company level, EBITDA posted a stronger 5.0% year-on-year growth, mainly attributed to various initiatives including containing costs and asset monetization. Notably, due to inflation operating costs have risen impacting the overall Group EBITDA margins.
The Group’s operating profit declined by 15.5%, the fall mainly led by devaluation of the LKR and high inflation costs in the first nine months of 2022. Operating expenses of the Group including SLT and Mobitel have increased due to forex devaluation, fuel costs and inflation that has prevailed in the country. Year-on-year electricity cost have decreased due to power outage whereas generator fuel cost has increased significantly due to power outage as well as fuel price increases.As a result of the sharp devaluation of the LKR against the USD during the previous quarter, Q2’22, SLT recorded a Rs.2.3 Bn forex gain. In contrast, the forex gain in Q3’22 was marginal at Rs.0.1 Bn due to the stability of forex movements during the period.
Sarvodaya Development Finance PLC (SDF) has become the first Sri Lankan company to receive the Client Protection Certification, awarded by MFR under the Cerise + SPTF methodology, marking a significant milestone in the country’s responsible finance sector and reaffirming the Company’s commitment to ethical, inclusive and client-centered financial services.
SDF was awarded the Bronze level of achievement in client protection, signifying that the institution meets all standards necessary for adequate Client Protection under the Universal Standards for Social and Environmental Performance Management.
The certification was awarded by MFR, a leading global rating agency that provides assessments, data and technical expertise to the sustainable finance industry. Headquartered in Italy, MFR operates through five regional offices across Ecuador, Mexico, Kenya, the Kyrgyz Republic and India, covering four continents and maintaining one of the widest global footprints among specialized rating agencies. With more than 2,800 assignments conducted across over 110 countries, MFR holds a leading position in the global responsible finance certification and assessment landscape.
The Client Protection Certification is widely recognized and valued across the responsible finance industry, particularly among investors, donors and development finance stakeholders. It reflects an institution’s ability to uphold the principle of “doing no harm to clients”, which is considered a minimum expectation within the responsible and inclusive finance sector.
For SDF, the certification further strengthens its position as a purpose-driven financial institution committed to serving underserved communities, micro and small enterprises, rural entrepreneurs and productive sectors that require accessible, responsible and sustainable financial support. It also reinforces the Company’s approach to balancing financial inclusion with sound governance, transparency and client welfare.
Cyril Rodrigo’s Restaurants (Pvt) Ltd (Green Cabin) has expanded its presence in Sri Lanka’s hospitality and events sector through a strategic partnership with Havelock City to manage and operate its banquet facilities, introducing ‘Havelock City Banquets by Green Cabin’. The collaboration brings together Havelock City’s premium event infrastructure and Green Cabin’s expertise in catering, hospitality, creating an integrated offering for weddings, corporate functions, private celebrations, and large-scale social events in Colombo.
The partnership represents a significant milestone in Green Cabin’s broader growth strategy as the company continues to diversify its hospitality portfolio beyond its traditional restaurant and bakery operations. Under the new arrangement, Green Cabin will serve as the exclusive catering partner for all events hosted at the venue, delivering end-to-end culinary and hospitality services supported by decades of operational expertise.
As demand continues to grow for professionally managed event spaces that combine convenience, quality service, and premium dining experiences, ‘Havelock City Banquets by Green Cabin’ aims to address an increasingly sophisticated market seeking seamless event execution under a single trusted provider.
CSE investor sentiment dropped yesterday amid what seemed to be an initial lack of clarity over the signing of the ceasefire agreement between the US and Iran, market analysts said.
Amid those developments both indices moved downward. The All Share Price Index went down by 88.08 points while the S and P SL20 declined by 4.35 points.
Turnover stood at Rs 1.86 billion with five crossings. NDB 796,000 shares crossed for Rs 87.6 million and its shares traded at Rs 110, Dialog Axiata 500,000 shares crossed to the tune of Rs 23 million; its shares traded at Rs 46, Singer SriLanka 300,000 shares crossed to the tune of Rs 22.8 million; its shares sold at Rs 76.10, Sampath Bank 150,000 shares crossed for Rs 21.8 million; its share s traded at Rs 145 and CIC Holdings 625,000 shares crossed for Rs 20 million; its shares traded at Rs 32.
In the retail market companies that mainly contributed to the turnover were; Hemas Holdings Rs 281 million (8.6 million shares traded), Dialog Rs 127 million (2.8 million shares traded), NDB Rs 101 million (916,000 shares traded), JKH Rs 62 million (three million shares traded), Lanka Realty Investments Rs 55 million (948,000 shares traded), Commercial Bank Rs 52 million (248,000 shares traded) and Central Finance Rs 40 million (177,000 shares traded). During the day 75.6 million share volumes changed hands in 18167 transactions.
It is said banking sector counters, especially NDB and Sampath Bank, performed well while telecom sector counters, especially Dialog, were also active at the floor. Manufacturing sector, especially JKH, performed well too.
Yesterday the rupee was quoted at Rs 333.50/334.00 to the US dollar in the spot market from Rs 333.90/334.20 the previous day, while bond yields were down further as the market continued to rally, dealers said.
The telegraphic transfer rate for Sri Lanka’s rupee against the US dollar was 329.50 buying, Rs 338.50 selling; the euro was Rs 374.8506 selling, Rs 388.7676 buying; and the pound was Rs 433.7044 buying, Rs 447.7500 selling.
By Hiran H. Senewiratne
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