Insurance

LRA Elevates Janashakthi Limited (JXG) to Investment Grade Status

Janashakthi Limited (JXG), the parent company of the Janashakthi Group of Companies, has received a notable credit rating upgrade from Lanka Rating Agency (LRA), elevating its status from BB- to BBB-. This upgrade, signaling a transition from moderate risk to investment grade, underscores the Janashakthi Group’s robustness, stability, and sustained growth across its operational sectors.

Established in 1994, the Janashakthi Group has evolved into a financial conglomerate with a diversified presence in Insurance, Finance, and Investment Banking domains. As the principal holding entity, it holds majority stakes in vital subsidiaries like Janashakthi Insurance PLC, Orient Finance PLC, and First Capital Holding PLC, all pivotal to the Group’s success. Despite navigating through macroeconomic uncertainties, the Group has exhibited resilience and adaptability, propelled by strategic initiatives, improved financial performance, and strengthened capitalization indicators, culminating in this credit rating upgrade.

The upgrade is attributed to several key factors, including enhanced financial results and profitability driven by diversified income streams and improved returns from subsidiaries. Notably, the Group’s net profit surged to LKR 7 billion in 9MFY24, marking significant growth compared to the previous year. Additionally, prudent debt management, reinforced by strong dividend inflows and profit retention strategies, contributed to the reduction in debt levels and bolstering of leverage indicators.

Commenting on the upgrade, Ramesh Schaffter, Managing Director/Group CEO of Janashakthi Group, expressed satisfaction, highlighting the Group’s commitment to financial prudence, management, and strategic growth. He underscored the Group’s confidence in its business model and subsidiaries, emphasizing the continuous delivery of value to stakeholders. Looking ahead, the Group aims to strengthen its financial position, elevate governance standards, and exceed stakeholder expectations.

Thanushka Jayasundera, Group Chief Financial Officer, shared optimism about the Group’s long-term trajectory, emphasizing strategic efforts to sustain and enhance financial performance through diverse income streams. This includes exploring opportunities for a potential listing on the Colombo Stock Exchange (CSE) and expanding the Group’s footprint both locally and internationally. With a balanced investment portfolio and a well-defined organizational framework, the Janashakthi Group remains poised for continued growth and success under the leadership of its Board of Directors and eight principal pillars.

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