Experts advice needed....why has SHL made a loss for this quarter?

Experts advice needed....why has SHL made a loss for this quarter?

SHL is widely considered as a platinum conglomerate....the next JKH...etc....

If they have such a high reputation, why have they made a loss this quarter? over to you experts.....

http://forum.srilankaequity.com/t18565-sri-lanka-softlogic-holdings-in-losses-in-march

SHL did not make much profits during any of the quarters in the current financial period compared to the size of their balance sheet. Last quarter they made a small profit and this quarter they made a loss. Look at the quarterly profits for the year ended 31 March 2012;

Q1====> LKR276Mn
Q2====> LKR224Mn
Q3====> LKR68Mn
Q4====> (LKR74Mn)

SHL's finance cost has increased over the period. Specifically the last quarter increase over the previous quarter is LKR120Mn.

Q1 ====> LKR433Mn
Q2=====>LKR420Mn
Q3=====>LKR485Mn
Q4=====>LKR605Mn

Irregular items such as (Profit) / loss on sale of Short Term investments, Changes in fair value of short term investments, Change in fair value of investment property, Fair Value adjustment on Business Combination and Amortisation of Intangible assets ahve significant influence over SHL's net Profit/Loss. The Net total of these items during the period;

Q1=====>(LKR96Mn)
Q2=====>LKR289Mn
Q3=====>(LKR505Mn)
Q4=====> LKR100mn

Apart from this, Revenue and GP has come down during this quarter from the previous.

Revenue ====>Q3 LKR6,123Mn=====>Q4 LKR5,386Mn
Gross Profit==> Q3 LKR2,171mn =====>Q4 LKR1,802Mn


Out of all above, I think higher leverage and resulting heavy finance cost impacts SHL's profitability.

Will SHL recover in future?

can they be the next JKH?

ccsentha wrote:Will SHL recover in future?

can they be the next JKH?

Very long way to go.

ccsentha wrote:Will SHL recover in future?

can they be the next JKH?

Day dreaming is not prohibitted in this forum, by the way.

glwking wrote:

ccsentha wrote:Will SHL recover in future?

can they be the next JKH?

Day dreaming is not prohibitted in this forum, by the way.

This is not day dreaming, this is asking others opinion

did any when expect google to be where they are now, when they started in 2000s with 4-7 employees?

ccsentha wrote:

glwking wrote:

ccsentha wrote:Will SHL recover in future?

can they be the next JKH?

Day dreaming is not prohibitted in this forum, by the way.

This is not day dreaming, this is asking others opinion

did any when expect google to be where they are now, when they started in 2000s with 4-7 employees?

just because a few companies made huge successes doesn't mean all that we want could be a great success

At this moment, I wouldn't bet my money on something like that. Still, I was never happy at all with the IPO pricing of SHL

It is evident that not only SHL but many other companies (through introductions) have paved way for existing shareholders to earn massive gains by going public.

npp wrote:

ccsentha wrote:

glwking wrote:

ccsentha wrote:Will SHL recover in future?

can they be the next JKH?

Day dreaming is not prohibitted in this forum, by the way.

This is not day dreaming, this is asking others opinion

did any when expect google to be where they are now, when they started in 2000s with 4-7 employees?

just because a few companies made huge successes doesn't mean all that we want could be a great success

At this moment, I wouldn't bet my money on something like that. Still, I was never happy at all with the IPO pricing of SHL

It is evident that not only SHL but many other companies (through introductions) have paved way for existing shareholders to earn massive gains by going public.

White collar crime,which is part and parcel of our country's powerful chinthana.

Again come to ccesntha's query, comments of Glwking,npp and myself seems to be contrary to ccsentha.
But that is the bitter fact.

Redbulls wrote:

npp wrote:

ccsentha wrote:

glwking wrote:

ccsentha wrote:Will SHL recover in future?

can they be the next JKH?

Day dreaming is not prohibitted in this forum, by the way.

This is not day dreaming, this is asking others opinion

did any when expect google to be where they are now, when they started in 2000s with 4-7 employees?

just because a few companies made huge successes doesn't mean all that we want could be a great success

At this moment, I wouldn't bet my money on something like that. Still, I was never happy at all with the IPO pricing of SHL

It is evident that not only SHL but many other companies (through introductions) have paved way for existing shareholders to earn massive gains by going public.

White collar crime,which is part and parcel of our country's powerful chinthana.

Again come to ccesntha's query, comments of Glwking,npp and myself seems to be contrary to ccsentha.
But that is the bitter fact.

I'm not saying that SHL will definitely be next JKH

npp wrote:

ccsentha wrote:

glwking wrote:

ccsentha wrote:Will SHL recover in future?

can they be the next JKH?

Day dreaming is not prohibitted in this forum, by the way.

This is not day dreaming, this is asking others opinion

did any when expect google to be where they are now, when they started in 2000s with 4-7 employees?

just because a few companies made huge successes doesn't mean all that we want could be a great success

At this moment, I wouldn't bet my money on something like that. Still, I was never happy at all with the IPO pricing of SHL

It is evident that not only SHL but many other companies (through introductions) have paved way for existing shareholders to earn massive gains by going public.

every single IPO which came last year has been over priced. issued with a P/E of 16-22. which is very high for a developing country and an unsteady economic country.

But it's peoples mistake. we should analyse and not buy these.

And some of the companies income have come down after the issue of IPO, they have not maintained the EPS of Pre-IPO. They might have have legally manipulated the accounts to show high EPS Pre-IPO.

companies are supposed to grow with the extra IPO funding, but that is not happening.

BTW when IPO's were flooding in CSE (late last year) the following article was shared by Sriranga.
http://forum.srilankaequity.com/t12026-should-you-invest-in-ipos?highlight=invest+in+ipo

ccsentha wrote:

glwking wrote:

ccsentha wrote:Will SHL recover in future?

can they be the next JKH?

Day dreaming is not prohibitted in this forum, by the way.

This is not day dreaming, this is asking others opinion

did any when expect google to be where they are now, when they started in 2000s with 4-7 employees?

Do not worry brother.This is a free forum.You can ask any question if there is no intention of manipulation.Some people think they are born experts.....do not worry about them also.

Growth in Revenue, Gross Profit and Profit Before Finance Cost looks promising but we have to wait & see how that translates to the bottom line in future.

Thanks Greedy for the feedback.

Heavy Import tax is going to affect the retail and information technology of SHL, isn't it?and samsung's superior phones is going to affect the market of Nokia

They need to buy into more sectors..............

ccsentha wrote:Heavy Import tax is going to affect the retail and information technology of SHL, isn't it?and samsung's superior phones is going to affect the market of Nokia

They need to buy into more sectors..............

I don't know about the market for Nokia in Sri Lanka. iPhone and Samsung are dominating the market in Kuwait.

Monster wrote:

ccsentha wrote:Heavy Import tax is going to affect the retail and information technology of SHL, isn't it?and samsung's superior phones is going to affect the market of Nokia

They need to buy into more sectors..............

I don't know about the market for Nokia in Sri Lanka. iPhone and Samsung are dominating the market in Kuwait.

http://www.email-marketing-reports.com/wireless-mobile/smartphone-statistics.htm

Revenue was increased by only 98% compared to last year.But admin exp was increased by 202%.
Anyway if they manage their bottom level,we can expect good results in coming quarters. However Personally i don't believe the management of this co ,same like REEF,PCH,VONE. They would prefer to steal public money.
But if there is an opportunity,we have to grab it.These days i am very interesting about VONE,only for short term.

market bull wrote:Revenue was increased by only 98% compared to last year.But admin exp was increased by 202%.

This is due to consolidation of Asian Alliance Insurance and Asiri Hospital Holdings Plc in the year ended 31 March 2012. Asian Alliance Insurance' most of the direct costs & overheads fall into Admin Expenses when consolidated with SHL.

Out of the Total Admin Expenses of LKR4,111Mn, LKR1,457Mn coming from Asiri Hospital Holdings Plc which is consolidated this year.

Thank you for clarification.

They play nicely with FV adjustments & inter company dividend incomes to show high profits.But those items would not help to improve cash flow.negative group cash balance (1135Million)

greedy wrote:

market bull wrote:Revenue was increased by only 98% compared to last year.But admin exp was increased by 202%.

This is due to consolidation of Asian Alliance Insurance and Asiri Hospital Holdings Plc in the year ended 31 March 2012. Asian Alliance Insurance' most of the direct costs & overheads fall into Admin Expenses when consolidated with SHL.

Out of the Total Admin Expenses of LKR4,111Mn, LKR1,457Mn coming from Asiri Hospital Holdings Plc which is consolidated this year.

Redbulls wrote:

Monster wrote:

ccsentha wrote:Heavy Import tax is going to affect the retail and information technology of SHL, isn't it?and samsung's superior phones is going to affect the market of Nokia

They need to buy into more sectors..............

I don't know about the market for Nokia in Sri Lanka. iPhone and Samsung are dominating the market in Kuwait.

http://www.email-marketing-reports.com/wireless-mobile/smartphone-statistics.htm

http://forum.srilankaequity.com/t18619-sri-lanka-handset-market-led-by-nokia-a-third-multi-sim-in-2011-research#121327