3 June 2024 12:58 am Views - 117
Softlogic Capital, the financial services sector of the Softlogic group consisting of Softlogic Life, Softlogic Finance,
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Softlogic Capital Chairman Ashok Pathirage |
Softlogic Stock Brokers and Softlogic Asset Management (Softlogic Invest), recorded robust and resilient revenue growth, reporting notable topline growth during the year ended on March 31, 2024.
Softlogic Capital’s consolidated revenue reached Rs.36.7 billion for the year ended on March 31 2024, which is an increase of 13 percent over the last financial year. The sector also reported a profit before tax (PBT) of Rs.431 million, with a growth of 168 percent during the period in review.
Operating profit improved up to Rs.11 billion, which is a 36 percent YoY growth compared to the previous year with PAT improving to a loss of Rs.66 million, compared to the previous year’s loss of Rs.2.3 billion. Furthermore, the operating profit margin for the period stood at 29 percent, a growth of 400 basis points against the corresponding period last year.
The last quarter under review ending on March 31, contributed significantly to the aforesaid performance contributing a total revenue of Rs.9.2 billion, which is a 12 percent growth and PBT of Rs. 763 million, which is a 150 percent growth compared to the same period in 2023, whilst total assets of the sector were Rs.69 billion.
Softlogic Capital as an individual entity faced a challenging period last year, however, resulting from a series of restructuring initiatives undertaken to overcome these challenges, it is on a steady trajectory recording a total annual revenue of Rs.3.1 billion and an annual PBT of Rs.535 million as at March 31, 2024. This growth is largely a result of some key measures undertaken during the last quarter of the financial year.
Amongst the entities under Softlogic Capital, Softlogic Life emerged as the largest contributor to sector revenue, accounting for 89 percent of the total revenue. Standing tall as the second-largest life insurer in the market, Softlogic Life posted a gross written premium of Rs.7.2 billion during the first three months ending on March 31, 2024. The topline growth was an increase of 20 percent compared to 3 percent during the corresponding period of last year. Softlogic Life leads the health insurance space and has upheld its promise to policyholders by honouring claims and benefits up to Rs.3.4 billion for the quarter ending on March 31, 2024.
Softlogic Finance has undergone a number of structural changes that has seen the operations of the company being stabilised and is now on the final steps towards resuming business based on a differentiated technology concentrated focus. Softlogic Stockbrokers are developing active plans to diversify and attract new customers to the market and recently launched a revolutionary StockGPT application that utilizes AI to help research. New accounts opened constituted 15 percent of the total established at the Colombo Stock Exchange. Softlogic Invest maintains a significant retail focus with the second highest number of accounts in the unit trust industry, with the company managing AUM of Rs.43 billion to be within the top five in the industry.
Softlogic Capital PLC Chairman Ashok Pathirage said, “Softlogic Capital’s performance over the past year stands as a testament to our resilience and grit in navigating challenging macroeconomic conditions amid the toughest of times faced by the company. Despite facing significant headwinds, the sector has achieved growth and profitability through our various verticals with agile strategies, rigorous cost management practices, innovative financial products tailored to evolving needs of customers and with our relentless focus on operational efficiency. Our ability to adapt and drive forward in a volatile environment underscores the strength of our business model and our team’s unwavering commitment. We remain dedicated to delivering improved value for our stakeholders and are confident in our continued success in the years ahead.”