Group revenues rose 7.9 percent to 6.7 billion rupees and expenses rose 8.7 percent to 4.2 billion rupees. Direct interest costs rose 25 percent to 185 million rupees. Gross profits grew 5.2 percent to 2.3 billion rupees.
"Despite the fact that the current business environment is sluggish there is a reason for optimism when we look at the growth of revenue over the last one year," group chief executive Asoka Pieris told shareholders in an interim statement.
"In the 2nd quarter of last year there was a decline of 1 percent in Group revenue followed by a 3 percent decline in the 3rd quarter of last year.
"In the 4th quarter of last year we experienced a 3% growth and in the 1st quarter of 2014, we have experienced an 8 percent growth."This leaves us with optimism that there will be a double digit growth in the 2nd quarter of 2014 and onwards."
Net finance costs fell to 275 million rupees from 316 million a year earlier.
Pieris said collections were difficult and the firm was using it call centre and text messages to remind customers to keep arrears under control.