JKH’s PAT Soars By 417%

0
33

Blue chip and diversified John Keells Holdings PLC (JKH), the bourse’s third largest market capitalised company, the first being Expo Lanka Holdings and the second, LOLC, saw JKH Group revenue from a low base increase by 71 per cent Year-on-Year (YoY) to Rs 218.07 billion, while recurring Group EBITDA increased by 152 per cent to Rs 39.26 billion and profit after tax by 417.41 per cent to Rs 20.44 billion for the financial year 2021/22, data on its annual report released yesterday showed.

“The significant growth in profits was driven by the turnaround in the Group’s Leisure businesses, the revenue recognition at ‘Cinnamon Life’ and improved performance across all other business verticals,” its Chairman Krishan Balendra said.

The Leisure industry group, in particular, recorded a significant turnaround in performance with a recurring EBITDA of Rs 3.78 billion compared to the negative recurring EBITDA of Rs 3.59 billion in the corresponding year.

“The Maldivian Resorts segment continued its strong recovery where the occupancy and average room rates at our hotels reached pre-pandemic levels. With the relaxation of travel restrictions, the Colombo Hotels and Sri Lankan Resorts segments recorded a significant turnaround, reporting a positive EBITDA and PBT in the fourth quarter,” he said.

The Group’s Port business recorded an increase in profitability driven by volume growth and ancillary revenues, while the Bunkering business recorded an increase in profitability driven by higher margins on account of the increase in global fuel prices and volumes.

The retail industry group recorded an encouraging performance with same store sales growth driving profitability in the supermarket business, while the office automation business recorded a strong increase in mobile phone volumes, although PBT was materially impacted on account of the sharp depreciation of the rupee, said Balendra.

The consumer foods industry group continued its strong recovery momentum with all segments recording strong double-digit growth in volumes, with volumes reaching pre-pandemic levels, he said.

The insurance business recorded double-digit growth in gross written premiums driven by a strong growth in regular new business premiums. The banking business recorded an increase in profitability aided by loan growth, focused recovery efforts and cost management initiatives, he said.

CSE

Meanwhile, retailers drove the bourse for the second consecutive market day to yesterday, despite persistent uncertainty, resulting in the ASPI gaining by 2.53 per cent to 8,474.49 points and the S&P SL 20 Index by 3.42 per cent to 2,844.97 points. Turnover made was Rs 2.73 billion on a 153.29 million share volume.

Nonetheless, the bourse suffered net foreign outflows (NFOs) for the third consecutive market day to yesterday with a figure of Rs 25.69 million, increasing NFOs in the calendar year to yesterday to Rs 1.41 billion.

Rupee

Meanwhile, the guided benchmark market ‘spot,’ administered since last Friday (13 May) closed unchanged at Rs 360/365 to the US dollar in two-way quotes for the fifth consecutive market day to yesterday, market sources told Finance Today.

They further said trades in the administered ‘spot’ (Rs 360/365) were mainly restricted to ‘bank-client’ outright trades, while the interbank foreign exchange (FX) market was however dominated by swaps, which were outside the domain of the FX market for this purpose.

Meanwhile, YoY as at yesterday, this administered market ‘spot’ has weakened by between 80.23-82.27 per cent (Rs 160.25-164.75), thereby causing cost-push inflationary pressure, as Sri Lanka is an import-dependent economy.

In related developments, the administered ‘spot’ for official purposes, YoY as at yesterday has depreciated by 80.03 per cent (Rs 159.78). Yesterday, the value of this official administered ‘spot’ was fixed at Rs 359.44 to the dollar, while a year ago it was Rs 199.66. Meanwhile, the administered market ‘spot’ a year ago was Rs 199.75/200.25 to the dollar in two-way quotes.

The official administered ‘spot’ is used for transactions involving only among the GoSL, Central Bank of Sri Lanka (CBSL) and the country’s foreign reserves. It’s administered to show Sri Lanka’s foreign debt in rupee terms low, while in the case of the administered market ‘spot,’ to show a lower cost of living and/or inflation. ‘Spot’ trades are settled after two market days from the date of transaction. CBSL, the steward of GoSL debt and its foreign reserves deals in ‘spot.’

By Paneetha Ameresekere