Abans records Rs. 1.5 b consolidated PAT | Sunday Observer

Abans records Rs. 1.5 b consolidated PAT

21 February, 2021

The recently ended year posed a series of challenges in the financial market and business sphere, as the Covid-19 pandemic gave rise to a plethora of risks, drawbacks and losses in terms of profit, capital and company sustainability.

A sharp increase of 187% was depicted in the Group Profit After Tax to end at LKR 1.5 Billion for the nine-month-period ending December 2020 (compared to last year’s LKR 520 Million); while a 175% year-on-year growth was noted in the Profit-After-Tax of Abans PLC (the company) to end at LKR 1.45 Billion, compared to the previous year’s LKR 527.1 Million.

Abans Group scored a record top performance for the third quarter (Q3) for the Financial Year 2020/21 with a Profit After Tax of LKR793Million, seeing a significant 144% increase compared to the year before.The Company reported a PAT of LKR750.6 Million for Q3, a 105% increase from last year, which proves the resilience of the company to adapt to any change in market conditions.

“Foresight, smart strategy and strong implementation has enabled Abans to rise to leadership positions in many of the sectors they operate in. However, it was necessary to recalibrate strategy to ensure they were geared for the new normal, for an era driven by artificial intelligence and big data, which would provide significant competitive advantage to those who were fast enough to embrace it. Following these strategies have proven to be quite effective, as seen by the remarkable results displayed by the Financials up to December 2020,” stated Mrs. Aban Pestonjee, Chairperson and Founder of Abans Group of Companies.

Despite the severe repercussions of the Covid-19 pandemic on several businesses, revenuefor Q3 reached a growth of 40%, at both Group and Company level, while Cumulative Revenue for nine months depicted a year-on-year growth of 9%,.

The Group Gross Profit stood at LKR 7.4 Billion and LKR 3 Billion for nine months and three months (Q3) respectively.

“The Group, as a whole, is geared to perform even better in the coming year, with the implementation of new policies and evolving methodologies,” said Behman Pestonjee (Tito), Managing Director of Abans Group.

Driven by strategic cost reduction policies and working capital management strategies carried out in the past nine months, the Group’s (as well as the company’s) Admin and Selling Expenses noted a decrease to LKR 4.9 Billion, compared to LKR 5.6 Billion from the previous year.

Furthermore, Net Finance Cost for the nine-month-period was reduced to LKR 619 Million from LKR 921 Million; whereas for the 3rd quarter, the same was reduced to LKR 119 Million compared to LKR 286 Million last year. This was reduced mainly due to the low interest rate environment and the company’s strategic working capital management.

Mrs. Chandrika Perera,Executive Director - Finance, commented, “The Group’s financial and business strength and stability has placed Abans at a prominent position of being able to pursue greater heights and achievements in the years to come.”