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Sri Lanka Equity Forum » Stock Market Talk »  Perpetual Treasuries profits up

Perpetual Treasuries profits up

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1 Perpetual Treasuries profits up on Tue Sep 27, 2016 10:13 am

sampath.anuradha


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Sri Lanka's Perpetual Treasuries profits up 434-pct to Rs5.1bn

Sep 27, 2016 06:39 AM GMT+0530 | 0 Comment(s)

ECONOMYNEXT - Perpetual Treasuries Limited, a primary gilt dealership, connected the family of a controversial former Sri Lanka central bank governor, has made a profit of 5.1 billion rupees for the year to March 2016 up 434 percent from a year earlier, published data show.

The firm reported capital gains of 5.2 billion rupees from bond trading in the year to March 2016, up 581 percent from 767 million rupees a year earlier, accounts published in Sri Lanka's Sunday Observer newspaper showed.

Under central bank regulations, all primary dealers have to publish their accounts.

Return on beginning-of-the-equity of 1,065 million was 481 percent.

Sri Lanka's bond markets were hit by a series of controversial bond auctions involving allegations rigging and insider dealing in 2015 and 2016 during the tenure of ex-Central Bank Governor Arjuna Mahendran.

Perpetual Treasuries is connected to Mahendran's son-in-law and he came under fire over conflicts of interest as long term bonds were sold at high rates where large volumes.

Sri Lanka's President Maithripala Sirisena declined to renew Mahendran's term of office amid the allegations, which became the focus of a parliamentary inquiry.

Mahendran has denied wrongdoing. 

Interest income at Perpetual Treasuries rose 162 percent to 942.8 million rupees and interest expenses rose 132 percent to 589.1 million rupees, and net interest income rose 233 percent to 353 million rupees.

The majority of profits of a primary dealer however comes from capital gains. Primary dealers in government securities, bids at government bond auctions and sell them to other buyers making a margin. 

The price of a government bond rise when interest rates falls and the price falls when interest rates go up.

When rates fall, a dealer with a portfolio can sell and make profits from bond bought at a higher interest rate (low price). Interest rate volatility provides opportunities for dealers to make gains by selling down their portfolio.

Concerns were raised that after selling government bonds at high interest rates (low prices) by accepting sharply higher volumes of bids from favoured dealers effectively rigging the auctions, the bonds were then dumped dealers at low rates (high prices) on the Employees Provident Fund, which was managed by the central bank. (Colombo/Sept27/2016 - recast/updated)

http://www.economynext.com/

2 Re: Perpetual Treasuries profits up on Thu Sep 29, 2016 10:44 am

bandulawee


Manager - Equity Analytics
Manager - Equity Analytics
Will First Capital reach Rs. 40/- today.

3 Re: Perpetual Treasuries profits up on Thu Sep 29, 2016 11:30 am

EquityChamp

avatar
Moderator
This is the lead story for people to speculate that CSEC & CFVF are going to make similar kind of gains and the run in share price. Sometimes CFVF can show good gains but I doubt on CSEC.

4 Re: Perpetual Treasuries profits up on Thu Sep 29, 2016 12:16 pm

bandulawee


Manager - Equity Analytics
Manager - Equity Analytics
Going through Financial Statements I could not see the so called 5 billion profit. Their profits have fallen from 2.8 billion in 2015 to 1.5 billion in 2016. The article may have been to prop up the company image or to sling mud at the Prime Minister. The positive sign for buyers is that it is the time for declaration of dividends. Although earning per share has fallen to 46 cents from Rs 9.00 last year, the dividends could be higher as only Rs 4.00 was paid out per share last year. As the company has no immediate need to retain profits they might declare at least half of last years dividend to keep share holder interest.

5 Re: Perpetual Treasuries profits up on Fri Sep 30, 2016 7:19 am

Chinwi

avatar
Associate Director - Equity Analytics
Associate Director - Equity Analytics
@EquityChamp wrote:This is the lead story for people to speculate that CSEC & CFVF are going to make similar kind of gains and the run in share price. Sometimes CFVF can show good gains but I doubt on CSEC.

I wanted to write the same but didn't  .  People should know other primary dealers did not get unbelievably mastered opportunities Paraputu got.

Just for reference, Perputual defeated Harry Jayawardene'e Aitken , Dialog, KDDP's Hayleys etc in profit making, even mammoth Nestle.  

List is given below. Only 6 listed big Groups have reported gains above Perpetual. (JKH, COMB, SAMP, DIST, LOLC, HNB)

Those who were defeated by Perpetual:

2015 වසරේ ලංකාවේ සමාගම් ලාභ ලබා ඇති ආකරය රුපියල් කෝටි වලින්..


1. ජෝන් කීල්ස් සමාගම – කෝටි 1410යි [ රුපියල් මිලියන 14100යි ]
2. කෝමර්ෂල් බැන්ක් ලිමිටඩ් – කෝටි 1180යි [ රුපියල් මිලියන 11800යි ]
3. හැටන් නැෂනල් බෑන්ක් – කෝටි 1050යි [ රුපියල් මිලියන 10500යි ]
4. එල් ඕ එල් සී LOLC – කෝටි 850යි [ රුපියල් මිලියන 8500යි ]
5. සම්පත් බෑන්ක් පි එල් සී – කෝටි 660යි [ රුපියල් මිලියන 6600යි ]
6. ඩිස්ටලරීස් සමාගම – කෝටි 630යි [ රුපියල් මිලියන 6300යි ]
7 . පර්පච්චුවල් ට්‍රෙශරීස් – කෝටි 520යි [ රුපියල් මිලියන 5200යි]
8 . ඩයලොග් සමාගම – කෝටි 520යි [ රුපියල් මිලියන 5200යි]
9 . පීපල්ස් ලීසිo සමාගම – කෝටි 470යි [ රුපියල් මිලියන 4700යි]
10. නෙස්ලේ ලංකා සමාගම් – කෝටි 410යි [ රුපියල් මිලියන 4100යි]
11 . සෙන්ට්‍රල් ෆිනැන්ස් සමාගම – කෝටි 390යි [ රුපියල් මිලියන 3900යි]
12 . සේලාන් බැoකුව – කෝටි 380යි [ රුපියල් මිලියන 3800යි]
13. එන් ඩී බී බැoකුව – කෝටි 350යි [ රුපියල් මිලියන 3599යි]
14 . හේලිස් සමාගම – කෝටි 300යි [ රුපියල් මිලියන 3000යි]
15 . රෝයල් සෙරමික් – කෝටි 290යි [ රුපියල් මිලියන 2900යි]
16. නේසන්ස් ට්‍රස්ට් බැoකුව – කෝටි 260යි [ රුපියල් මිලියන 2600යි]
17. ලංකා ඉන්දීය ඔයිල් සමාගම – කෝටි 220යි [ රුපියල් මිලියන 2200යි]
18. ලයන් බෘවරීස් සමාගම – කෝටි 210යි [ රුපියල් මිලියන 2100යි]
19. රිචඩ් පීරිස් සමාගම – කෝටි 210යි [ රුපියල් මිලියන 2100යි]
20. එයිට්කන්ස් ස්පෙන්ස් සමාගම – කෝටි 200යි [ රුපියල් මිලියන 2000යි]
21. ටෝකියෝ සීමෙන්ති සමාගම – කෝටි 190යි [ රුපියල් මිලියන 1900යි]
22. කාර්ගිල්ස් සමාගම – කෝටි 160යි [ රුපියල් මිලියන 1600යි]
23. ආසිරි හොස්පිටල්ස් සමාගම – කෝටි 150යි [ රුපියල් මිලියන 1500යි]
24. සී අයි සී සමාගම – කෝටි 130යි [ රුපියල් මිලියන 1300යි]
25. එක්ස්පෝ සමාගම – කෝටි 110යි [ රුපියල් මිලියන 1100යි]
26. සිoගර් ශ්‍රීලංකා සමාගම – කෝටි 110යි [ රුපියල් මිලියන 1100යි]
27. පැන් ඒසීයා බෑන්ක් ලිමිටඩ් – කෝටි 100යි [ රුපියල් මිලියන 1000යි]
28 ඕඩේල් ODEL – කෝටි 29යි [ රුපියල් මිලියන 200යි ]


යෙදූ මුදල money employed ගැන බැලුවොත් 'Paraputu val' treasuries ට ලංවෙන්නෙ මේ කිසිම කෙනෙකුට ආත්මෙකට​  බෑ.

Hence a considerable risk is there expecting big profits from CFVF and CSEC referring  perpetual performances.

6 Re: Perpetual Treasuries profits up on Fri Sep 30, 2016 7:28 am

troy

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Moderator
Agree with Chinwi... CFVF or CSEC did not had the luxury which Perpetual had. (at least as per general public knows...) So going behind CFVF and CSEC might be a risky thing based on the profits of a un-comparable peer.

7 Re: Perpetual Treasuries profits up on Fri Sep 30, 2016 7:29 am

troy

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Moderator
BTW these are only listed entities and there are more profitable state ventures like BOC and People's bank!

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