Dunamis Capital reports 6- month profits of Rs. 878 mln
View(s):A transformative contribution from its financial services unit has significantly bolstered the half-year profits of Dunamis Capital PLC, enabling the Group to post profit after tax of Rs. 878 million for the six months ending 30th September 2014 against a net loss of Rs 0.22 million in the corresponding six months of the previous year.
In a media statement, the group said it improved revenue by 68.6 per cent to Rs. 1.8 billion and pruned its cost of sales by 13 per cent to Rs. 742.5 million, achieving a five-fold improvement in gross profit from Rs. 212 million in the first half of 2013-14 to Rs. 1.05 billion for the period under review.
Dunamis Capital PLC is the holding company of First Capital Holdings PLC, Kelsey Developments PLC and Premier Synthetic Leather Manufacturers (Pvt) Ltd, the statement said.
Provisional financial statements filed with the Colombo Stock Exchange show that the Group converted a loss of Rs. 29.5 million on fair value of financial investments held for trading in the first half of last year, to a gain of Rs. 419.7 million this year, and improved other operating income for the six months to Rs. 188 million. Commenting on the Group’s results, Dunamis Capital’s Chairperson Manjula Mathews said, “We are pleased with our performance to date which has considerably exceeded expectations but expect profits to moderate significantly in the second half of the year.”
Net profits of the Group’s financial services unit First Capital Holdings PLC grew to Rs. 868 million for the period from Rs. 95 million a year earlier. “The unit’s primary dealer arm remained the key contributor to profits as ideal trading conditions created opportunities for exceptional returns,” she added.
“Kelsey Developments PLC, the Property Development arm of the group showed improved performance during the first six months of 2014-15 in line with our expectations,” she reported, disclosing that the company’s consolidated profit after tax was Rs. 22 million for the period.