Singer Finance net profit grows 106% in Q4

Singer Finance recorded a net profit of Rs. 46 million, in 4Q FY 2011/2012, a growth of 106 percent compared to the corresponding quarter of the previous year in the midst of a challenging business environment during the latter part of the 4th Quarter of FY 2011/2012.

The company's income increased by 47 percent in the fourth quarter from Rs. 245.3 Mn to Rs. 360.2 Mn. The income for the year ended March 2012 increased by 30 percent from Rs. 970.6 to Rs. 1,263.3 Mn. Profit for the full year increased by 79 percent, from Rs. 112 Mn to Rs. 201 Mn.

The company's numbers were buoyed by an increase in the Leasing and Hire Purchase portfolio, which accounted for 61 percent of revenue for the last quarter and 58 percent of revenue for the year ended March 31, 2012.

The costs in relation to revenue, demonstrated by an operating costs-to-income ratio of 42 percent - down from 44 percent for last year's same quarter and year on year."

Further augmenting the numbers were the company's low Non-Performing Loans (NPL) Ratio, which stood at 0.47 percent during FY 2011/2012. The NPLs are among the lowest in the industry. The Risk Weighted Capital Ratio of 17.36 percent too is well above the minimum regulatory requirement of 10 percent.

Singer Finance has zero exposure to shares and the stock market and is totally unaffected by the decline in share prices experienced currently.

Singer Finance (Lanka) PLC was listed on the main board of the Colombo Stock Exchange and currently 24.94 percent of shares are held by the public.