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PLC debenture issue
PLC is planning to raise LKR 6 billion though a listed debenture issue.
However, this amount seems too much for company in size of PLC , moreover in this environment of yet high interest rates.
They will have to pay (A+ rating) = >> above 16%. Recent SEYB debenture was on 15.5% per annum, however, banks are more secure in terms of regulation and dependability for investments though SEYB is rated below PLC. ( Those are two different Rating types.
They try to take advantage of current favorable rule for tax exempted listed debentures- that's a good move.
PLC has solid capital base of LKR 18 billion for assets of LKR 96 billion. They have seen their profitability is getting affected from the high interest rates, slowdown in vehicle sales and high provision in the investment cycle ma nearing maturity.
Period 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
PAT 1,269.0 1,734.0 800.0 848.0 1,166.0 720.0 806.0 541.0
adj PAT 885.0 228.0 823.0 974.0 1,152.0 945.0 995.0 952.0
adj PAT is PAT is without provisioning, to understand the effect of increase in provisioning.
They seem to be maintaining the profitability even in difficult operating conditions.
NOT ADVICE: use careful analysis on your own.
PLC is planning to raise LKR 6 billion though a listed debenture issue.
However, this amount seems too much for company in size of PLC , moreover in this environment of yet high interest rates.
They will have to pay (A+ rating) = >> above 16%. Recent SEYB debenture was on 15.5% per annum, however, banks are more secure in terms of regulation and dependability for investments though SEYB is rated below PLC. ( Those are two different Rating types.
They try to take advantage of current favorable rule for tax exempted listed debentures- that's a good move.
PLC has solid capital base of LKR 18 billion for assets of LKR 96 billion. They have seen their profitability is getting affected from the high interest rates, slowdown in vehicle sales and high provision in the investment cycle ma nearing maturity.
Period 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
PAT 1,269.0 1,734.0 800.0 848.0 1,166.0 720.0 806.0 541.0
adj PAT 885.0 228.0 823.0 974.0 1,152.0 945.0 995.0 952.0
adj PAT is PAT is without provisioning, to understand the effect of increase in provisioning.
They seem to be maintaining the profitability even in difficult operating conditions.
NOT ADVICE: use careful analysis on your own.
