Hathway Finance profit rises by 287% in the fourth quarter despite operating loss of Rs 1.81 crore; World Merchant’s EPS stands at Rs 22.84 in the last quarter

Hathway Finance Company Limited (HATH) has reported raise in net profit at Rs 5.66 crore along with significantly increased EPS at Rs 14.17 for the fourth quarter of the current fiscal year 2074/75.

Unaudited financial report of Hathway Finance circulated today; has stated that net profit has immensely increased to Rs 5.66 crore in fourth quarter of fiscal year 2074/75 from Rs 1.46 crore reported in the corresponding quarter of the previous fiscal year 2073/74 with increased Earning per Share (EPS) at Rs 14.17. The main reason for the increment in profit despite its huge operating loss is the write back provision for possible losses worth Rs 8.04 crore.

It’s extended loans of Rs 28.29 crore from Rs 1.94 crore in the corresponding quarter. Its deposits collection has increased to Rs 30.50 crore in the fourth quarter of the fiscal year 2073/74. It has paid up capital of Rs 30 crore with diminished reserve at Rs 7.92 crore in Q4.

Net Interest income is the primary source of income for finance company. HATH’s net interest income has immensely raised from Rs 32.22 lakh in the corresponding quarter last year to Rs 3.38 crore in the fourth quarter of fiscal year 2074/75. Its operating loss has increased to (Rs 1.81) crore in Q4, from profit of Rs 21.02 lakh in corresponding quarter.

The finance company’s non-performing loan (NPL) has reduced to 4.37 percent in the last quarter. Currently, Net worth per share stands at Rs 66.91 and P/E ratio at 8.89 times.

World Merchant and Finance Limited (WMBF) has reported increase in net profit by 142.54% in the fourth quarter with a diminished reserved of Rs 23.60 crore. The finance company seems to have just focused in reporting profit in the financial statements but the performance of the company is under par.

The unaudited financial report of the finance company has stated that the net profit has increased to Rs 4.15 crore from previous of Rs 1.71 crore.

It has extended loans of Rs 21.48 crore and has collected deposits of Rs 7.48 crore. It has paid up capital of Rs 18.19 crore with diminished reserve of Rs 23.60 crore.

Net interest income has raised to Rs 4.89 crore in the fourth quarter. The operating profit has increased to Rs 1.68 crore.

The finance company’s non-performing loan (NPL) stands at 100% in the last quarter. The EPS of the company stands at Rs 22.84, Net worth at negative Rs 29.71 and P/E ratio at Rs 4.56.