Virtusa announces 15% drop in revenue
Sri Lankan multinational Virtusa recently reported that its revenue for the second quarter of its 2010 fiscal year had dropped 15% year-on-year to US$ 37.5 million, according to a company statement. Meanwhile, the company also announced increases in operating income and net income from the first quarter of the same fiscal year.
Virtusa's statement indicated that the company "ended the second quarter of fiscal 2010 with $123.8 million of cash, cash equivalents, short-term investments and long-term investments. The company generated cash from operations of $8.3 million during the second quarter of fiscal 2010".
The reason for these second quarter gains were outlined by Virtusa’s Chairman and Chief Executive Kris Canekeratne, who indicated that, during this period, “the underlying business environment showed signs of improvement while the pace of the recovery remains measured. We started work with seven new clients as a result of our focus on accelerating business outcomes and reducing overall IT costs”. Ranjan Kalia, Virtusa's Chief Financial Officer, noted that the way forward for the company, was “organic revenue growth in the second half of the year, driven by expansion from both existing clients and the newer clients we have added over the last 18 months”.
At the same time, Virtusa also announced its acquisition of UK-based InSource, LLC, a privately-held technology consulting firm with expertise in the insurance and healthcare industries, which will become a wholly owned subsidiary of Virtusa.\ Acquired for US$ 7.3 million in cash, Virtusa's statement indicates that it "expects InSource to contribute revenue of $1.2 to $1.4 million for the third fiscal quarter and $3.0 to $4.0 million for full fiscal year 2010". (JH)
ACL Cables 2Q10 net profit slumps by 77%
Declining revenue, income and profit from operations contributed to a sharp 77% fall in net profit for ACL Cables PLC for the quarter ended 30 September 2009. According to the company’s consolidated provisional financial statements released this week, net profit for the period fell to Rs.22 million from Rs.100 million for the corresponding period in 2008. ACL Cables also recorded a 27% decline in revenue for the period under review to Rs.1.6 billion from Rs.2.2 billion the previous year.
The company’s income statement shows that 63% decline in other operating income, down to Rs.4.4 million from Rs.11.9 million last year.
Further contributing to the decline in net profit was a 32.1% drop in profit from operations to Rs.158 million for the period ended 30 September 2009 from Rs.233 million in 2008. (NG)
Losses for Agalawatte Plantations on lower turnover
Agalawatte Plantations PLC Group made a Rs.125 million loss for the quarter ended 30 September 2009, compared to a profit of Rs.35 million during the same period in 2008. According to the company’s interim financial statements, Group turnover for the period decreased by almost Rs.200 million to Rs.369 million from the corresponding period last year.
Despite a decrease in the cost of sales to Rs..363 million from Rs.454 million, the gross profit was Rs.5.8 million for the current period, down from Rs.104 million. The Group income statements show that selling and distribution expenses, administration expenses and interest expenses all increased, contributing to the overall Group losses. (NG)
Central Finance makes profit despite difficult period
Central Finance (CF) said it has emerged through perhaps the most difficult period ever for registered finance companies when public confidence in the sector was seriously threatened as a result of the collapse of unregulated institutions also engaged in mobilizing funds from the public. In a press release, the company stated that this period also witnessed very high interest rates, tight liquidity and deteriorating market conditions where certain sectors of the economy were adversely affected as a result of the global economic crisis. As a result, growth of new business was seriously hampered.
CF was able to improve its net interest income by 5.24%, a key measure of profitability from core operations for the half year ending September 2009. Profit after tax was Rs.430.6 million for the company and Rs.515.9 million for the Group. Operating profit before taxes was Rs.716.7 million for the company and Rs.872.7 million for the Group.
The company has already launched a branch expansion plan with new branch locations identified in the East, North and South. According to the press release, CF is well poised to capitalize on such opportunities as a result of its high levels of liquidity and substantial reserves of available credit lines.
(NG)
Trans Asia Hotels PLC records loss
Trans Asia Hotels PLC recorded a 343% net loss for the quarter ended 30 September 2009 after the company made Rs.69 million net loss compared to a net profit of Rs.28 million during the corresponding period in 2008. According to the interim financial statements, revenue decreased by 68% to Rs.102 million from Rs.318 million last year. Despite a 25% decrease in cost of sales, gross profit plunged 98% to Rs.4 million from Rs.187 million last year.
The income statement does show that other income for the quarter ended 30 September 2009 increased by 1,413% to Rs.75 million from Rs.4.9 million in 2008. The company states that other income includes the balance on the insurance claim for property damage amounting to Rs.30 million and the attributable Business Interruption Claim of Rs.166.3 million for the quarters under review.
The company also states that the hotel reopened on 1 September 2009 as Cinnamon Lakeside, having undergone restoration and refurbishment amounting to Rs.444 million. During the period, assets to the value of Rs.37.5 were derecognized, of which Rs.23.8 mllion was charged to the income statement and the balance Rs.13.7 million was adjusted against the Revaluation Reserve. (NG)
Carson Cumberbatch records profits
The Carson Cumberbatch PLC Group revenue and direct operating expenses have grown marginally for the six months ended 30 September 2009 from the corresponding period last year. In its financial statements, the company stated that with the marked revival of investor sentiments in the Colombo Stock Exchange (CSE), the investment portfolios of the Group’s investment sector which are carried at market values have appreciated considerably, thereby adding Rs.389 million to the net result under the line item of reversal of impairment of business assets. However, the company said it is an unrealized gain which depends entirely on the fortunes of the CSE. With the reduction of rates and lower borrowing levels, the finance charge also has reduced from the comparable period. Due to these reasons, the Group was able to improve its after tax result by 17% over the same period last year.
At the company level, lower finance costs and overheads helped to improve the net result by 62% recording an after tax profit of Rs.323 million in spite of a 13% drop in the revenue stream, the company said. The plantation, brewery and investment sectors were the main contributors to the net result of the Group which was achieved amidst a serious global downturn in economic activity. There are signs that many of the economies are gradually moving out of the recessionary conditions which augurs well for the future, especially in commodity markets.
Group net profit for the period increased by 17% to Rs.3.1 billion from Rs.2.7 billion the previous year. Revenue increased by 4% to Rs.10 billion compared to Rs.9.6 billion in 2008. (NG)
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