Reliance Finance Limited (RLFL) has shown subtle growth in net profit by 26.99 percent in its fourth quarter (Q4) in the last fiscal year 2073/2074.
The published unaudited financial report of last fiscal year 2073/2074’s Q4, the finance company’s net profit stand at Rs 10.98 crore, up from Rs 8.65 crore of previous fiscal year’s Q4.
The net interest income of the finance has grown by 30.68 percent to Rs 13.31 crore from Rs 10.18 crore in corresponding Q4 of the fiscal year 2072/2073.
RLFL’s paid up capital has been constant at Rs 51.25 crore in Q4 compare with previous fiscal year 2072/7073 and reserve of Rs 16.99 crore with sizable growth of 182.78 percent from Rs 6.01 crore in previous fiscal year. Furthermore, RLFL is seeking approval from SEBON to issue 45% right shares to its shareholders.
The finance has deposits of Rs 3.23 arba .Consequently, its extended loans and advances stood at Rs 2.65 arba in Q4 whereas in the previous fiscal year it was Rs 2.11 arba.
Its non-performing loan (NPL) is down to 1.65 percent in Q4 from 2.50 percent in the previous fiscal year, while capital adequacy ratio (CAR) and CD ratio is 21.74 percent and 67.74 percent respectively.
RLFL has increase its earning per share (EPS) by 26.99 percent from Rs 16.88 to Rs 21.44 in the corresponding quarter and P/E ratio is at 9.89 times.
Major Highlights:
| Indicators (Rs in "000") |
FY 2073/74 Q4 |
FY 2072/73 Q4 |
Growth (%) |
| Paid Up Capital |
512,571 |
512,571 |
- |
| Reserve and Surplus |
169,998 |
60,116 |
182.78 |
| Deposits |
3,233,001 |
2,425,364 |
33.30 |
| Loans and Advances |
2,652,522 |
2,110,318 |
25.69 |
| Net Interest Income |
133,137 |
101,880 |
30.68 |
| Provision |
6,967 |
5,638 |
23.57 |
| Write Back |
1,214 |
17 |
7,041.18 |
| Operating Profit |
84,285 |
72,792 |
15.79 |
| Net Profit |
109,881 |
86,526 |
26.99 |
| Capital Adequacy Ratio (%) |
21.74 |
23.75 |
(8.46) |
| NPL (%) |
1.65 |
2.50 |
(34.00) |
| Cost of Funds (%) |
9.32 |
6.32 |
47.47 |
| CD Ratio (as per NRB) (%) |
67.74 |
63.34 |
6.95 |
| Base Rate (%) |
12.90 |
9.38 |
37.53 |
| EPS (Annualized) |
21.44 |
16.88 |
26.99 |
| Net Worth Per Share |
133.17 |
111.73 |
19.19 |
| P/E Ratio |
9.89 |
- |
|
Likewise, Synergy Finance Limited (SYFL) has registered outstanding profit growth of 1102.04% percent in the fourth quarter (Q4) of the fiscal year 2073/74 due to major write back off loan loss provision by 97.04% of Rs 26.31 crore up from 13.35 crore.
As per the report published by the finance company today, its net profit has increased to Rs. 18.11 crore in the fourth quarter from Rs 1.50 crore in the corresponding quarter.
The deposits collection decreased by 4.09% to Rs 1.86 arba whereas the lending hike to Rs 1.67 arba, 19.71% more than the corresponding quarter of last fiscal year.
The finance company Earning per Share (EPS) stand at Rs 38.19 from the Rs 3.18 in the corresponding quarter of the last fiscal year, net worth per share is at Rs 88.95 and P/E ratio is at 4.06 times only.
The finance company non-performing loan (NPL) hugely declined to 19.55% in fourth quarter from 28.14% in the corresponding quarter. It should be known by all the investors that company whose NPL is above 5% are riskier to invest and also those companies cannot distribute any dividends to its shareholders from the profit it had earned. Also negative reserves of SYFL’s shows the major reasons behind low net profit.
Major Highlights:
| Indicators (Rs in "000") |
FY 2073/74 Q4 |
FY 2072/73 Q4 |
Growth (%) |
| Paid Up Capital |
474,409 |
474,409 |
- |
| Reserve and Surplus |
(52,409) |
(233,591) |
(77.56) |
| Deposits |
1,864,578 |
1,944,103 |
(4.09) |
| Loans and Advances |
1,678,114 |
1,401,762 |
19.71 |
| Net Interest Income |
123,492 |
54,965 |
124.67 |
| Provision |
146,979 |
114,537 |
28.32 |
| Write Back |
263,196 |
133,572 |
97.04 |
| Operating Profit |
(119,979) |
(136,403) |
(12.04) |
| Net Profit |
181,183 |
15,073 |
1,102.04 |
| Capital Adequacy Ratio (%) |
14.66 |
6.71 |
118.48 |
| NPL (%) |
19.55 |
28.14 |
(30.53) |
| Cost of Funds (%) |
8.59 |
7.15 |
20.14 |
| CD Ratio (as per NRB) (%) |
77.36 |
63.34 |
22.13 |
| EPS (Annualized) |
38.19 |
3.18 |
1,102.04 |
| Networth Per Share |
88.95 |
50.76 |
75.24 |
| P/E Ratio |
4.06 |
- |
|
