Strong revenue growth at Softlogic Holdings

Consolidated revenue at Softlogic Holdings PLC recorded a strong growth of 46 percent to Rs. 52.6 billion during the 6- month period ending September 2021 with the quarter registering a commendable growth of 29 percent to Rs.28.1 billion. Operating profit for the six- month period recorded a two- fold increase to Rs. 5.9 billion while the quarter witnessed an increase of 41 percent to Rs. 3.6 billion overcoming numerous systemic challenges, the company announced this week in a media release.

The retail sector emerged to be one of the top performers during the quarter amid supply- side challenges with the consequent lockdown and re- imposition of the import restrictions consequent to dollar shortages in the market.

Softlogic Life Insurance achieved superior digitalisation across its distribution channels encompassing Ag e n cy, Alternate and Micro- Mobile, that eliminates paperwork and ensures faster convenience for customers and other business partners. The company has demonstrated its strength throughout the pandemic compensating COVID- 19 related claims which exceeded Rs. 500 million for the year.

Softlogic Finance, which returned to profitability in the quarter, has raised a total sum of Rs. 5.64 billion by way of Rights Issues and Subordinated debt. The capital raised enhanced company’s liquidity position and improved its Tier 1 capital and Total Capital Adequacy Ratios of the company in compliance with regulatory requirements allowing it to move forward on a clear growth path and capture the opportunities available in the market.

With the country’s heightened digitalisation drive in the pandemic era, most companies had to fast track digitalisation and automation for business continuation. Softlogic’s IT business, the group’s first company, is a key beneficiary of this rapid transformation as business intelligence and Industry 4.0 based innovations are being developed as value-added services, it said.

Gross profit for the 6- month period increased 43 percent to Rs.15.7 billion while the quarter recorded a growth of 19 percent to Rs.8.5 billion.

Cumulative Group EBITDA more than doubled to Rs.7.8 billion in 1HFY22 in comparison to Rs. 3.8 billion in 1HFY21. Quarterly EBITDA rose 31 percent to Rs.4.6 billion.

Group profitability reported a strong rebound recording a PAT ( post- tax profit) of Rs. 883 million for the period under review compared with a loss of Rs.3.8 billion in 1HFY21.