PCH’s profits increase by a whopping 118%

COLOMBO: It has been a year of handsome gains for PC House (PCH) - the leading provider of winning solutions in the ICT Industry. PCH has unveiled the company’s financial results for the first 4 months of trading of the ongoing FY 2010/2011 up to 31st July 2010, which reflects an impressive level of growth. The Company’s total revenue increased by 38% year over year to Rs. 1.07 billion while the Net Profit after Tax amounted to Rs.56.3 million, a whopping 118% increase over last year.

PCH believes that the recent growth in the industry coupled with its internal initiatives have helped the company to post strong profits. A delighted S.H.M. Rishan, Chairman of PCH stated, “We are extremely pleased with our performance thus far, especially given that the first 4 months are usually the slowest for our Industry. These results vindicate what we have been saying all along, that we have everything in place to lead the ICT Industry into the future.”

This aggressive financial performance comes on the heels of its hugely successful IPO preceded by a strategic corporate re-branding. Commenting on the company’s stellar financial results, Mr. Rishan said, “We have always focused on raising the bar in terms of ICT-related development. We have also invested heavily in the development of our human resources and in efficiency related training programmes. All these factors have played a decisive role in defining our current financial performance and will undoubtedly drive further growth in the future as well.”

PCH benefitted greatly from the prevailing low interest rate environment that has resulted in finance costs reducing by Rs. 30.7 million or 42% when compared with the same period last year. The profits from operations, that is profits before finance costs and taxes, increased by a very encouraging 17% to Rs. 129.8 million. This performance has resulted in PCH having a Return on Equity of 25.2%, up from 13.2% last year.

PCH Director, Sarath Wikramanayake said, “We are now all set to put the proceeds from the IPO to work for us. We plan to open four new Branches in Hambantota, Killinochchi, Mannar and Nelliady in September 2010. In addition, we will be opening a showroom in Mulathivu the following month. Things are getting very exciting at PCH these days, with everyone focused on delivering on our promise to our new shareholders.”

Plans are now at an advanced stage at PCH to accelerate the development of its BPO/KPO business as well as launch its IDC business.

Given the prudent strategies being implemented by Management in this rapidly developing phase the Country is going through, PCH expects that they will be able to comfortably surpass the projected profits for the current year that was taken into account in the valuation of the Company in preparation for the IPO.

Photo caption: Chairman of PC House S.H.M. Rishan and Director PC House Sarath Wikramanayake