Janaki Finance to pledge around 65% bonus share besides cash dividend

ShareSansar, September 1:

Janaki Finance Company Limited is planning to pledge around 65 percent bonus share plus some cash dividend from the massive net profit it posted in the last fiscal year.

Talking to ShareSansar this afternoon, Ram Nritya Shama, the Chief Executive Officer of the finance company based in Janakpurdham, said that though the final audit is still being prepared, they are planning to distribute handsome bonus share as well as cash dividend also because they have a reserve of dividend that the central bank did not allow them to distribute in the previous fiscal year 2069/70.

“The shareholders can expect around 60 to 65 percent bonus share and cash dividend this time around,” CEO Sharma added. “We are also planning to hold our AGM in Ashwin or by Kartik -- depending on when the central bank will approve the balance sheet.”

He further informed that the Board of Directors is expected to announce the bonus share and dividend within the next two weeks.

CEO Sharma, however, refuted rumors in the market that Janaki Finance will pledge around 100 percent bonus share this time also because its paid-up capital stands at just Rs 14.62 crore.

It may be noted that the central bank had blocked dividend proposed by the finance company for the previous fiscal year, citing high non-performing loan.    

Janaki Finance Company Limited posted 125 percent increase in the net profit in the quarterly report published today for the fiscal year 2070/71.

In comparison to the corresponding quarter of last fiscal year the net profit increased from Rs 3.97 crore to Rs 8.95 crore in the fourth quarter of the fiscal year 2070/71.

The finance company accumulated deposits of Rs 1.20 arba and the loan flow was Rs 91.17 crore in the fourth quarter. As compared to the corresponding quarter of last fiscal year the deposit and loan was Rs 1.01 arba and Rs 70.50 crore respectively.

Write back of provision for possible loss has also increased to Rs 8.01 crore up from Rs 2.36 crore in the fourth quarter.

The rise in the net profit is also due to the increase in the core business of the finance company as the net interest income has surged to Rs 10.71 crore from Rs 7.71 crore in comparison to the corresponding quarter.

The NPL of the finance company also dropped to 4.89 percent by the end of the fourth quarter, down from 11.82 percent at the end of the previous fiscal year 2069/70.

Likewise the EPS of the finance is Rs 61.20, per share net worth is Rs 272.01 and the P/E ratio is 8.17 times.