Softlogic Capital defies tough economic headwinds to grow by 13%, records Rs. 36.7 Bn Revenue and Rs. 431 Mn PBT in FY24

Softlogic Capital defies tough economic headwinds to grow by 13 records Rs. 36.7 Bn Revenue and Rs. 431 Mn PBT in FY24

Businesscafe - Softlogic Capital, the financial services sector of the Softlogic Group consisting of Softlogic Life, Softlogic Finance, Softlogic Stock Brokers and Softlogic Asset Management (Softlogic Invest), recorded robust and resilient revenue growth, reporting notable top-line growth during the year ended 31 March 2024.

Softlogic Capital’s consolidated revenue reached Rs.36.7 billion for the year ended 31 March 2024, which is an increase of 13% over the last financial year.


The Sector also reported a profit before tax (PBT) of RS. 431 million, with a growth of 168% during the period in review.


Operating profit improved up to Rs.11 billion, which is a 36% 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%, a growth of 400 basis points against the corresponding period last year.


The last quarter under review ending 31st March contributed significantly to the aforesaid performance contributing a total revenue of Rs. 9.2 billion which is a 12% growth and profit before tax (PBT) of Rs. 763 million which is a 150% 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 profit before tax (PBT) of Rs. 535 million as at 31st March 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% of the total revenue.


Standing tall as the second-largest life insurer in the market, Softlogic Life posted a Gross Written Premium (GWP) of Rs. 7.2 billion during the first three months ending 31 March 2024.


The top-line growth was an increase of 20% compared to 3% during the corresponding period of last year.


Softlogic Life leads the health insurance space and has upheld its promise to policyholders by honoring claims and benefits up to Rs. 3.4 billion for the quarter ending 31st March 2024.


Softlogic Finance has undergone a number of structural changes that has seen the operations of the Company being stabilized 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% of the total established at the Colombo Stock Exchange.


Softlogic Invest maintains a significant retail focus with the 2nd highest number of accounts in the Unit Trust industry, with the Company managing AUM of Rs 43 billion to be within the Top 5 in the Industry.


Commenting on the results, Chairman of Softlogic Capital PLC 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.”


Softlogic Capital’s portfolio of financial services comprises Softlogic Life Insurance PLC, an insurer licensed for Life Insurance by the Insurance Regulatory Commission of Sri Lanka; Softlogic Stockbrokers (Pvt) Ltd, a stock broking company licensed and operating on the Colombo Stock Exchange; Softlogic Finance PLC, a Licensed Finance Company under the purview of the Central Bank of Sri Lanka and Softlogic Asset Management (Pvt) Ltd, a Unit Trust Managing Company and an Investment Manager licensed by Securities and Exchange Commission of Sri Lanka.

 

Image Caption Chairman of Softlogic Capital PLC Ashok Pathirage

Last modified on Sunday, 02 June 2024 11:56