Softlogic Holdings records ‘resounding business turnaround’

As envisaged, with profitability increasing two-fold during the third quarter, business recovery has witnessed a resounding turnaround to reach near pre-crisis levels of transaction activity. This was fueled by local consumers alone in the absence of high-spending tourists, Softlogic Holdings said in an earnings review.

The review adds

: Coincidentally, this also corresponds with the positive changes reflected in the market and rising investor confidence. These results were achieved in the backdrop of import restrictions, airport closures and close monitoring of movements enforcing social distancing which affected most hotels, retail outlets and restaurants.

With the rollout of the vaccines currently taking place, and coinciding with the airport reopening, the economy will have a slow but steady recovery when tourism and export sectors propel the nation forward with increased FOREX earnings, employment generation, improved purchasing power.

Group turnover consolidated at Rs. 22 Bn during the quarter while cumulative revenue was Rs. 57.9 Bn during the first nine months of the financial year.

Gross Profit reached Rs. 18.8 Bn during the 1-3QFY21 while quarterly Gross Profit was Rs. 7.8 Bn.

Cumulative Group EBITDA reached Rs. 7.5 Bn while Rs. 3.7 Bn was reported for the quarter.

Operating profit for the quarter was Rs. 2.8 Bn while the cumulative operating profit reached Rs. 4.8 Bn.

The reduced volatility in the interest rate regime has resulted the change in insurance contract liabilities to decline. The quarter witnessed a transfer of Rs. 593 Mn in comparison to Rs. 707 Mn transfer last year. A transfer of Rs. 2.99 Bn was recorded for the cumulative period compared to Rs. 1.5 Bn in 1-3QFY20.

Quarterly PBT recorded more than a two-fold increase to Rs. 985 Mn while PAT for the quarter recorded an increase of 99% to Rs. 780 Mn.