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First Capital Equity Fund – Start your Unit Trust fund from Rs. 1,000/-

Equity Fund

This new open ended fund will invest in shares that are listed on the Colombo Stock Exchange and it is brought to you by the Unit Trust Fund Management Company that delivered the best fixed income returns in 2013 and 2014.

The First Capital Equity Fund is regulated by the Securities and Exchange Commission of Sri Lanka and is managed by qualified professionals.

Acquire a diversified equity portfolio investment from little as Rs. 1000/-

  • Terms and conditions apply
  • The price of units may fluctuate
  • Past performance is not a reliable indicator of future performance

For more information Tel No: + 94 11 7639813 / +94 11 2639898

First Capital Equities Provides Convenience and Accessibility

Colombo 13 August 2015 : First Capital Equities Private Limited relocated its office to No: 347/1/1, Dr. Colvin R. De Silva Mawatha, Colombo 02. The company is the Stockbroking arm of First Capital Holdings PLC an Investment Bank operating in the equity and debt market.

The new office declared open by Mr. C.T.A. Schaffter will continue to offer the same efficient and friendly service at its new address, delivering reliable advice and awareness on investing in shares listed at the Colombo Stock Exchange for the benefit of its customers.

jaliya

Speaking at the opening ceremony the Chief Executive Officer of First Capital Equities Pvt Ltd Jaliya Wijeratne said “As a result of the loyalty and supports of our clients the company has grown in staff and customer base. Therefore we are proud to announce that due to expansions in our operations, we are moving to a new location to serve our clients better.”

“We would like to take this opportunity to express our appreciation for the continued trust placed on First Capital Equities as we strive to exceed the expectations of our clients and stakeholders.” Wijeratne further stated.

First Capital Equities Private Limited contact details are as follows

First Capital Equities (Pvt) Ltd.
No: 347/1/1
Dr. Colvin R. De Silva Mawatha,
Colombo 00200
General : 0112-145000
Fax : 0115-736264
Email : info.equity@firstcapital.lk
Web : www.firstcapital.lk

First Capital Holdings PLC office remains at No 02 Deal Place Colombo 00300.

ICRA Lanka assigns [SL]A-(Stable) outlook to First Capital Treasuries Limited

ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd, a group company of Moody’s Investors Service has assigned the Issuer rating of [SL]A- (pronounced SL A minus) with a stable outlook to First Capital Treasuries Limited (FCTL or the company). ICRA Lanka has also assigned the [SL]BBB+ (pronounced SL triple B plus) rating with stable outlook to the LKR 500 Mn Subordinated Unsecured redeemable Debenture programme of the company.

ICRA-lanka-rating
The ratings factor in FCTL’s position as an established Standalone Primary Dealer in Sri Lanka with a long track record, established franchise and clientele. The rating also factors in the prudent internal control and processes, along with the adequate risk management systems put in place, which is commensurate in relation to the risks intrinsic to a Primary Dealer’s business. The ratings also factor in FCTL’s comfortable liquidity position due to liquid nature of the portfolio and availability of sanctioned bank facilities. ICRA Lanka notes that while the portfolio of the company has minimal credit risk, the same however is susceptible to adverse movements in the interest rates. The rating takes note of the improvement in the financial performance of the company during FY2015, due to favourable interest rate scenario, which resulted in trading gains for the company; however the same is likely to moderate in the current financial year as the market interest rates are likely to remain largely range-bound or move upwards. In the above context, ICRA Lanka also notes that FCTL’s portfolio duration, which had remained largely conservative in the past increased to 3.7 in March 2015 (3.2 in June 2015); this is likely to make its profits susceptible to unfavourable interest rate movements, if the same occurs within a short time span. Nevertheless, FCTL’s established risk management system, its experienced dealing team and, its investment committee, which largely consists of the senior management and Board of Directors, reviews the various risks regularly thus mitigating risks to an extent. ICRA Lanka notes that the company’s regulatory capital adequacy is comfortable at 21.8% as in March 2015 vis a vis the regulatory requirement of 8%; however FCTL’s gearing has generally been higher than the industry average and, stood at about 10.2 times in March 2015 (5.9 times in June 2015) The company’s regulatory capitalization is comfortable to absorb the losses, if any, on the current portfolio due to unfavorable interest rate movements. ICRA Lanka further notes that there is scope for FCTL in improving its effective participation in the primary market; trading gains in FY2015 was largely from the secondary market transactions. Further, the ratings take cognisance and would closely monitor the developments on the outstanding contingent liabilities (Tax demands), which stood at about 20% of the net-worth as in March 2015.

FCTL’s portfolio as in March 2015 stood at about LKR 16 Billion, the same reduced to about LKR 10 Billion in June 2015 as the company brought down its portfolio holdings as the interest rate scenario is likely to remain largely range-bound or move upwards going forward, in the current financial year. The portfolio consists of Treasury bills and bonds, which do not carry credit risk and are highly liquid assets. The company is expected to deal only with government securities going forward also. However, FCTL is exposed to the counter party risks on its reverse repo exposures which were largely concentrated to about 7-8 entities as in March 2015.The company however closely monitors its exposures and takes proactive measures to mitigate the impact of the above mentioned risks. ICRA Lanka however notes that the company has an established clientele and had undertaken transactions with more than 50 entities during the year apart from the retail participants.

The company also has access to over 2500 clients of the First Capital Group (First Capital Holdings PLC and its subsidiaries).The First Capital Group entities have interests in margin trading, stock broking, asset management, corporate debt structuring and other
investments banking activities. The size of these group entities presently however is quite modest in relation to FCTL.

During FY2015, the company’s overall profitability improved as trading income increased sharply from LKR 227 Mn in FY2014 to LKR 900 Mn, while interest income remained largely stable. The above support the improvement in the overall profits of the company during the year as the operating expenses increased on account of bonus payments to employees. Consequently, FCTL’s PAT as a proportion of average assets improved to 5.1% in FY2015 from about 4.2% in FY2014. ICRA Lanka notes the company’s profitability performance in the current financial year is expected to moderate as trading gains are likely to be lower than in FY2015. FCTL’s portfolio consists of highly liquid assets, which along with the sanctioned bank lines of about LKR 1 billion with the First Capital Group provides comfort from a liquidity perspective.
Company Profile
Incorporated in the year 1982, FCTL is a Licensed Primary Dealer in Sri Lanka. The company is 94.4% held by First Capital Limited, while First Capital Limited is in-turn 99.9% held by First Capital Holdings PLC. First Capital Holdings PLC is 74.9% help by Dunamis Capital PLC, which is the ultimate parent of FCTL.

During FY2015, FCTL reported a net profit of LKR 730 Mn on a total asset base of LKR 16,096 Mn vis a vis a net profit of LKR 518 Mn on a total asset base of LKR 12,552 Mn.

In the three months ended June 2015, the company reported a net profit of LKR 107 Mn on a total asset base of LKR 10,630 Mn.
September 2015

ICRA Lanka assigns [SL]A- rating with stable outlook to First Capital Holdings PLC

ICRA Lanka Limited, a wholly owned subsidiary of ICRA Ltd, a group company of Moody’s Investors Service has assigned the Issuer rating of [SL]A- (pronounced SL A minus) with a stable outlook to First Capital Holdings PLC (FCH or the company). ICRA Lanka has assigned the [SL]A- (pronounced SL A minus) rating to the LKR 500 Mn Senior Unsecured Redeemable Debenture programme of the company. ICRA Lanka has assigned the [SL]A2+ (pronounced SL A two plus) rating to the LKR 1,000 Mn Commercial Paper programme of FCH.

ICRA-lanka-rating

ICRA Lanka has taken a consolidated view of FCH and its subsidiaries due to their common brand and senior management team and, other operational and financial linkages between the group entities. The ratings factor in the FCH’s status as the holding company of First Capital Treasuries Limited (FCTL, a standalone Primary Dealer in Sri Lanka with Issuer Rating of [SL]A- with stable outlook). The ratings take note of the improvement in the business and financial performances of the other group entities, which are engaged in corporate debt structuring, corporate finance, asset management, stock broking and in extending margin trading facilities, over the recent past. ICRA Lanka however notes that FCH’s performance is largely dependent on performance of FCTL, as the contribution from the other entities presently is quite modest. FCTL accounted for about 80% of the total consolidated asset base of FCH and about 70% of its consolidated profit before tax for FY2015. Thus, FCH’s performance is expected to be susceptible to the risks inherent in the primary dealer business. The above mentioned risk however is likely to be moderated by the prudent internal control and processes, along with the adequate risk management systems put in place for FCTL. The FCH group has an established clientele of over 2500, which is expected to support the business growth of the other group entities. ICRA Lanka takes cognisance of the comfortable liquidity position of the FCH group given the highly liquid assets and the sanctioned credit facilities from banks with the group entities.
FCH, being a holding company derives its income from the dividends from the group entities and income from its investments, which includes interest income and profit from investments. During FY2015, income from investments accounted for about 60% of the total income of FCH (Standalone), while dividend income contributed to the rest vis a vis 84% of income from dividends in the previous financial year. The increase in the investment income in FY2015 could be attributed to the one-time gain of about Rs.233 Mn following the reclassification of its investment in Orient Finance PLC, which was subsequently sold in June 2015.The company’s standalone performance is largely linked to the dividend income from its principal subsidiary, FCTL and, investment income. The expected moderation in the performance of FCTL in FY2016 vis a vis FY2015, is likely to impact the overall performance of FCH. The company’s funding profile is characterised largely by short term funding, which accounted for close to 80% of the total standalone debt in March 2015, while the remaining was in the form of long term debentures. FCH’s asset profile (Standalone) largely consists of short term loans funding to its group entities. The company’s standalone gearing stood moderately high at about 3.4 times as in March 2015; however the FCH group access to the sanctioned bank lines and its liquid assets provides comfort from a liquidity perspective.
ICRA takes note of the improvement in the performance of the other subsidiaries in the group. First Capital Limited, which is 99.9% held by FCH, is involved in corporate debt structuring, corporate finance and advisory
services. FCL witnessed an improvement in the performance due to increase in the fee based income (increased to Rs 127 Mn in FY2015 as compared to 12 Mn in FY2014) arising from above mentioned services offered, however profitability continues to be driven by the dividend income from the principle subsidiary, FCTL, which accounted for close to 50% of the total income of about Rs.1.1 Bn, while the remaining was contributed by interest income on its investments. FCL is the step-down holding company for the other entities in the FCH group including FCTL; First Capital Asset Management Limited (FCAML) that is involved in portfolio management; First Capital Markets Limited (FCML) that is involved in providing margin trading facilities and First Capital Equities (Pvt) Limited (FCEL) which is engaged in stock broking activities. FCAML, FCML and FCEL together accounted for about 6% of the FCH consolidated income and about 2% of the consolidated profit before tax. ICRA Lanka takes note the improvement in the business volumes in the above mentioned entities during FY2015, which supported the financial performances. FCML and FECL reported profits for FY2015 vis a vis losses in the previous financial year, while the FCAML was profitable and its financial performance has remained largely range bound over the last few years.

Company Profile
Incorporated in the year 1992, FCH is a public limited company listed on the Colombo Stock Exchange. FCH is the holding company of the financial services arm of Dunamis Capital PLC, which holds 74.9% in FCH. The company is engaged in making investments and managing its subsidiaries i.e. First Capital Treasuries Limited (FCTL) which is an authorised primary Dealer, First Capital Limited (FCL) involved in structuring and placement of corporate debt and corporate financial advisory services, First Capital Asset Management Limited (FCAML) involved in unit trust and portfolio management, First Capital Markets Limited (FCML) involved in providing margin trading facilities and First Capital Equities (Pvt) Limited (FCEL) which is engaged in stock broking activities and First Capital Investments (Private) Limited, which is the holding entity of FCEL.
During FY2015, FCH reported a consolidated net profit of LKR.985 Mn on a total asset base of LKR 20,464 Mn as compared to a net profit of LKR 331 Mn on a total asset base of LKR 16,360 Mn in the previous fiscal.
The company reported a standalone net profit of LKR 436 Mn on a total asset base of LKR 3,437Mn as compared to LKR 471 Mn on a total asset base of LKR 2,376 Mn.
September 2015