The Group continued to post healthy growth in revenue and profits for the quarter ended 30 June 2015. Turnover for the three months was 15% higher reaching Rs 1,062.3 million and Profit After Taxation (PAT) increased by 16% to Rs 154.6 million.
All the clusters of the Group posted double digit revenue growth for the quarter with the Investment cluster leading with a 37% increase to Rs 693.8 million, driven mainly by growth of the Group’s retail activities. During the period, an addition was made to the Investment cluster with the acquisition of a 49% shareholding in iVeri Payment Technologies, a pan-African electronic payment solutions provider based in Johannesburg, South Africa.
Whilst the Global Business cluster benefited from the strength of the US Dollar during the quarter, yielding a 31% increase in its PAT, the Investment cluster was negatively impacted by foreign exchange losses which crystallised on the repayment of USD loans.
Nine months ended 30 June 2015
Group revenue for the nine months rose by 15% to reach Rs 3,083.2 million. Group PAT for the period grew by 31% to Rs 455.0 million. Much of the improved PAT performance came from Global Business activities that saw both increased US Dollar billings and the positive impact of currency appreciation.
Challenges have surfaced over the past months, firstly with the Government’s decision back in April to reduce significantly the capped rate on Hire Purchase contracts and more recently with the potential impact of a renegotiation of the Double Taxation Avoidance Agreement with India. The Board, however, continues to believe that having a diversified revenue mix between local and foreign currency provides the Group with an important strength at a time of increased volatility. To that end, there are ongoing initiatives to diversify our product mix in Cim Finance, to expand our geographical footprint and to offer our Global Business clients more outsourcing solutions.
By order of the Board
Cim Administrators Ltd
12 August 2015