IPO investors richly rewarded with a Rs. 10,000 investment earning Rs. 8.6 million in dividends
Dilmah Ceylon Tea Company PLC (previously Ceylon Tea Services) has posted an excellent result within a challenging environment in the year ended Mar. 31, 2020, growing revenue eight percent and gross profit 14% over the previous year; but the bottom line declined two percent owing to what its chairman, Mr. Merril. J. Fernando called a “remarkable” 46% decline in the exchange rate.
Commenting that the outlook for the global economy appeared bleak, he said how long the corona virus will last God alone knows, adding “we can only pray for it to disappear soon and bring hope and comfort back to our homes and our lives.”
Dilmah, with the consent of its shareholders, has increased its contribution to the MJF Charitable Foundation from 10% to 15% of pre-tax profits to be spent towards addressing inequality and wider social and environmental concerns as a part of its core business. This will enable a significant increase in the foundation’s humanitarian operations.
The company’s key numbers for the year under review were: revenue up 8% to Rs. 11.61 billion, operating profit up 25% to Rs. 1.98 billion, pre-tax profit up 17% to Rs. 1.99 billion and the after tax profit down 2% to Rs. 1.56 billion. Dilmah’s total assets stood at Rs. 17.3 billion against liabilities of Rs. 4.97 billion.
Fernando, in his chairman’s review in the company’s recently published annual report, had drawn attention to the extraordinary rewards enjoyed by investors in what was then Ceylon Tea Services over the years. An investment of Rs. 10,000 in a thousand shares at the company’s initial public offering in 1982 had yielded Rs. 8.6 million in dividends and the original1,000 shares had increased to 20,000 via several bonus issues.
He has noted that the cost of an original ten-rupee share in the hands of the investor has as a result come down to fifty cents and the original 10,000-rupee investment is now valued at Rs. 531,000 at the current market price of the Dilmah share.
“Such is the power of Ceylon Tea in the hands of committed investors in the industry,” he has said.
It is not only investors who have benefited from Fernando’s conviction that “business is a form of human service.” He has said youth from the plantation community assisted by the MJF Foundation’s scholarship program have produced among others doctors, magistrates and chefs.
He says that the tea industry which is being written off by many, offers enormous potential to investors who believe in it. Government authorities responsible for tea can turn it around if they have a realistic vision for the industry, Fernando said welcoming recent interest and initiatives by government in finding solutions to longstanding issues in plantations and exports. Such efforts wold deliver benefit to the country’s economy and Ceylon Tea.
“If the tea industry is strategically managed in the hands of capable people with proven expertise, export earnings could well reach USD 5 billion within the next five years. Bulk tea exports should be discouraged and value added exports should be generously incentivised for the social end economic benefits they bring,” he said.
“Part of the additional income from value added export must be used to advertise and promote quality brands. This is likely to encourage bulk tea exporters to change course.”
HNB partners with Gammadda to develop Yaya 6 village in Anuradhapura
HNB PLC recently signed a Memorandum of Understanding with The Capital Maharaja Group’s initiative Gammadda Sri Lanka, the country’s largest rural development movement to develop infrastructure facilities of the Yaya 6 village Mahawilachchiya, in the Anuradhapura District.
The project is powered by HNB’s exclusive private banking proposition, The Club HNB, with the goal of engaging members and in opportunities for focused, impactful philanthropy.
A special event was hosted at The Club HNB premises on Greenpath which was attended by special guests from Yaya 6, Gammadda News 1st team and exclusive invitees of The Club HNB, during which HNB Managing Director/ CEO Jonathan Alles and Capital Maharaja Group Director Chevaan Daniel inaugurated the partnership with the signing of a Memorandum of Understanding.
“Rural communities form the backbone of this nation, therefore, HNB is proud to partner with the Capital Maharaja Group to support their ambitious and vital work under the Gammadda initiative. We are also grateful to The Club HNB membership and our branch network for once again stepping forward and contributing generously towards the upliftment of rural communities across Sri Lanka,” Alles said.
Providing access to clean drinking water is the 1st step in the agenda and a RO plant will be installed under the first phase of the development project. This will not only save lives but also prevent Chronic Kidney Disease (CKDu) prevalent in the region.
A new fully furnished library and computer lab will be just two other infrastructural additions to the village school Saliyamala Vidyalaya Pemaduwa, in addition to new washrooms which are to be constructed for the students and staff members. The project also entails renovation and refurbishment of the main road, the village temple, cleaning of the agrarian tank and construction of a new community hall under the initiative.
“It has been amazing working with HNB to achieve our mutual goal of providing Yaya 6 with much-needed infrastructure facilities. This project would not have been possible if not for the HNB customers, who came forward with their generous contributions to help this village in need. Therefore, I would like to take this opportunity to thank everyone of you who made this possible,” Capital Maharaja Group Director Chevaan Daniel said.
Notably, acclaimed Sri Lankan pianist and music director Soundarie David’s composition of ‘Stand up and be the change’, that was created to help raise funds and create awareness about the project was performed at the event by Soul Sounds with music provided by Ranga Dasanayake at the event.
Editor-in-chief and founder of ARTRA magazine Azara Jaleel, who was also present at the event, auctioned off a painting from the ARTRA Canvas collection to The Club HNB members in aid of the project.
“I am happy to be here today, where two great institutions have come together for this great cause. We are fortunate as customers to be able to contribute in any way possible, and we hope to join you in visiting Yaya 6 soon,” a valued Club customer,Mrs Niloo Jayatilleke said.
Those who wish to make a contribution to the initiative can make a payment via HNB SOLO, through a direct payment on the payment app or deposit funds to the account titled ‘We are the change’, account number: 005010173025.
With 252 customer centres across the country, HNB is one of Sri Lanka’s largest, most technologically innovative banks, having won local and global recognition for its efforts to drive forward a new paradigm in digital banking. Over the recent past, the bank was ranked among the World Top 1,000 Banks list compiled by the prestigious UK-based Banker Magazine. HNB has a national rating of AA- (lka) by Fitch Ratings (Lanka) Ltd.
HNB was also declared Best Sub-Custodian Bank in Sri Lanka at the Global Finance Awards 2020, in addition to winning the coveted Best Retail Bank in Sri Lanka Award for the 11th time at the Asian Banker Awards 2020, in recognition of its sustainable growth and continuous improvements in processes, products and services amidst a challenging macroeconomic environment.
The Finance Houses Association announces revision of Self-Regulation Code
The Finance Houses Association of Sri Lanka (FHA) the apex body of all Registered Finance companies has announced the introduction of its revised Self-Regulation Code which has been voluntarily practised by member companies over a long period of time, but has to be adapted to changing times.
The timely revisions to the Code were effected with a view to maintaining the highest standards on strategic and business operations in Sri Lanka’s Non-Banking Financial and Leasing Institutions (NBFI) sector.
The FHA collective of 39 Licensed Finance Companies (LFCs) is the driver of financial inclusion of Sri Lanka’s MSME sector which has a large footprint in the Bottom of the Pyramid segment of the country. The MSME sector is no less than the backbone of Sri Lankan economy involving over 70% of businesses in Sri Lanka, providing employment for 45% of the labor force and generating 52% of GDP.
Titled “Code of Conduct of Licensed Finance Companies Sri Lanka” the updated instrument was handed over to the Governor of Central Bank of Sri Lanka Prof. W. D. Lakshman and Bank’s officials by FHA Council members on March 18 at the Central Bank premises.
Niroshan Udage, chairman of FHA elaborated: “FHA’s time tested gentlemen’s agreement that was codified some time ago needed revisions and updates as per the requirements of today’s changing times. The overall objectives of updating the Code were to comply to all current regulatory and legal requirements while adhering to industry best practices. We take humble pride in the fact that the Code was not imposed on our sector by any authority but was self-introduced by all FHA members on their own will, which demonstrates the members’ strong commitment to sectoral integrity and their social responsibility.”
On March 18 members of FHA also handed over their Sustainability Mandate to the Governor of Central Bank Prof. W. D. Lakshman and top officials of the Bank. “The purpose of the Sustainability Mandate is to serve as the guideline for the LFCs to integrate sustainability principles holistically into their businesses, enabling sustainable value creation through their own financing approaches, in line with defined sustainability guidelines that would ultimately contribute towards national sustainability agenda and UN Sustainable Development Goals” said chairman Niroshan Udage.
‘CSE to bounce back, provided Corona-19 is held in check’
By Hiran H.Senewiratne
The CSE was, once again, somewhat sluggish yesterday on account of investor fears over a possible Covid-19 third wave, but the expectation in some sections that May corporate earnings will be exceptionally good had an uplifting impact on the market during the latter part of the day. The CSE could be expected to bounce back, top stock market analysts said.
” CSE will bounce back within the next few weeks if the Covid 19 new wave does not impact the global scenario, Head of Sales, Softlogic Stockbrokers (Pvt) Ltd. Eardley Kern told ‘The Island Financial Review’.
He said that the upcoming quarterly corporate earnings will likely be among the best in recent times and this would enable the market to perform in a positive way.
Windforce Ltd., the renewable energy firm, began trading above its price of Rs. 16 per share yesterday after raising Rs. 3.2 billion for wind power projects in Sri Lanka and Senegal. It contributed more than 28 percent to market turnover from its IPO, Kern said
Windforce stocks fetched Rs. 17.90 initially and rose to as much as Rs. 19.00 in intra-day trading, after being heavily oversubscribed, but settled at Rs. 18, which was an increase of Rs. 2.40 or 15 percent.
Amid those developments, both indices moved downwards. All Share Price Index declined by 105.53 points and S and P SL20 went down by 47.08 points. Turnover stood at Rs. 2.61 billion with two crossings. Those crossings were reported in Windforce, which crossed 7.2 million shares to the tune of Rs. 131.6 million; its shares traded at Rs. 18.50 and Sampath Bank 400,000 shares crossed for Rs. 20.4 million; its shares fetching Rs. 51.
In the retail market, five main contributors to the turnover were, Windforce Rs. 738 million (40.3 million shares traded), Browns Investments Rs. 281.5 million (44.6 million shares traded), Dipped Products Rs. 195 million (3.4 million shares traded), Piramal Glass Rs. 126.4 million (11 million shares traded) and Hayleys Rs. 113 million (1.5 million shares traded). During the day 139.3 million share volumes changed hands in 19927 transactions.
“The indices exhibited significant volatility during the early hours of trading and witnessed a continuous downwards movement during the whole session but Windforce gave some notable impetus to the market yesterday, analysts said.
COVID-19: Jaffna faces serious risk
An air of discontent prevails
7-billion-rupee diamond heist; Madush splls the beans before being shot
Unfit, unprofessional, fat Sri Lankans
The Burghers of Ceylon/Sri Lanka- Reminiscences and Anecdotes
Features7 days ago
Port City Bill Requires Referendum
news7 days ago
Two hotels to be built obstructing elephant corridor in Sinharaja – MONLAR
news4 days ago
Kanag-Isvaran PC fires opening salvo against Colombo Port City Economic Commission Bill before SC
Features6 days ago
Dangerous and meticulous work copying Sigiriya frescoes in Bell era (1896)
Features6 days ago
Dudley Senanayake: some personal anecdotes
Life style6 days ago
Confessions of a global gypsy
Features5 days ago
Colombo port city economic commission bill 2021
Sports6 days ago
Sri Lanka back pace for Bangladesh Tests