Share broking boosts John Keells fourth quarter

• Share broking contributes more to the firm’s profit than produce broking and warehousing

Share broking revenue accounted for the most of the profits generated by John Keells PLC, the commodities and stock broking arm of John Keells group, as the company rode on the domestic investor-fuelled run on stocks during the quarter ended March 31, 2021 (4Q21).

The company increased its revenues by as much as 120 percent in the three months to Rs.292.3 million from a year ago, out of which Rs.166.2 million came from its stock broking business, up from Rs.22.1 million.

Local investors became heavily active on the Colombo bourse ahead of a strong March quarter earnings season, as there was euphoria over the fast economic rebound from the beginning of this year, which sent stocks on a wild run during January before settling at current levels.

Last week, the All Share Price Index closed at 7,220.72, down 7.51 points from a week earlier and S&P SL 20 Index which gauges the performance of the most liquid 20 stocks ended at 2,900.34, up from 2,869.52 a week earlier. 

Buoyed by the performance of the stock market as well as the concessions on corporate tax, several private companies also made their stock market debuts with the most recent one being the initial public offering by the property development company, Prime Land Residencies which raised Rs.1.9 billion offering 20 percent of its shares.

Despite the widespread restrictions on economic activities, Sri Lankan stocks are broadly holding up its values, with investors expecting the current stretch of restrictions to phase out quickly without inflicting much damage on June quarter corporate earnings. 

Meanwhile, John Keells PLC which is also into tea and rubber broking and warehousing for tea auction produce, reported earnings of Rs.2.01 a share or Rs.122.2 million for the quarter under review, compared to a loss of Rs.193.1 million in the same quarter last year. 

For the full year ended in March 31, 2021 the company reported earnings of Rs.4.18 a share or Rs.254.2 million compared to a loss of Rs.187.8 million reported for the previous financial year. 

The annual revenues rose by robust 28 percent to Rs.828.2 million. 

John Keells Holdings PLC has 86.9 percent stake in John Keells PLC.