Softlogic Group holds consolidated revenue at Rs. 24.5 bn in Q1

Despite the adverse effects of the economy, Softlogic Group consolidated revenue held strong at Rs. 24.5 billion during the quarter consequent to the Group’s mixed portfolios re balancing top-line performance.

Group EBITDA recorded a strong rise of 45% to Rs. 4.7 billion during 1QFY23 primarily owing to better cost and inventory management. The Retail Sector was most impacted.

Top contributors to Group’s revenue for 1QFY23 were the Retail sector (40% contribution), Healthcare Services (22%), Financial Services (24%) and IT (7%). Leisure and Automobile together contributed 7% to Group’s top line for the quarter.

“Finance income, which predominantly comprises the investment gains at Softlogic Life Insurance, saw an increase of 317% to Rs. 3.9 Bn during the quarter primarily resulting from increased interest rates. AWPLR has increased from 9.85% to 22.27% for the period under review, said Chairman Ashok Pathirage..

This led to a 120% increase in net finance costs to Rs. 2.48 Bn which also includes substantial exchange losses during the quarter.

Retail sector, which recorded a formidable growth during the pandemic, is now facing one of the most challenging times in history.

Retail sector revenue was Rs. 9.7 Bn during the quarter, down from Rs. 13.5 Bn, due to the standstill on imports of mobile phones. Primary contributors to the sector topline emerged to be Consumer Electronics followed by Fashion, Restaurants and Supermarkets.

Healthcare sector continued its robust performance amidst the socio-economic shocks. Sector revenue increased 14% to Rs. 5.4 Bn during the quarter. Contribution from Asiri Hospital Holdings for the quarter was 40% of the hospital group’s revenue. Central Hospital made up 27% while Asiri Surgical Hospital contributed 20%.

Quarterly sector revenue grew 40% to Rs. 1.8 Bn as B2B hardware and software solutions segment continued its pivotal contribution in delivering financial results primarily led by IT infrastructure projects. Operating profit recorded an increase of 84% to Rs. 244 Mn for the quarter.

Sector EBITDA for the quarter reached Rs. 272 Mn (up 69%). Sector PBT rose 3% to Rs. 126 million for the quarter while quarterly PAT was Rs. 99 million.

Financial Services recorded a topline growth of 27% to Rs. 5.9 billion during the quarter. This growth was primarily led by Softlogic Life Insurance and Softlogic Finance.