Multi Finance sees turnaround in 4Q
Multi Finance PLC reported a net profit of Rs.18.6 million in the final quarter of FY13/14 against a net loss of Rs.54.7 million in the corresponding quarter of the previous year, the financial accounts published by the company showed.
The earnings per share for the period improved to Rs.3.32 from a loss per share of Rs.9.74.
However for the year ended March 31, 2014, the company’s net loss widened to 7 percent yoy t o Rs.61.7 million.
During the quarter under review, net income from operations reached Rs.39.9 million, up 71 percent with net interest income increasing 24 percent year-on-year (yoy) to Rs.31.7 million.
The company credited the higher net interest income to improvements in quality lending and strict credit processes introduced.
Operating expenses of the company fell to Rs.35.5 million as against Rs. 41.4 million YoY which is a 14 percent improvement mainly due to strict cost control mechanisms adopted. It’s noteworthy that the company’s net impairment has recorded an improvement of 198 percent which is a reversal of Rs.12.6 million as against a charge of Rs.12.8 million in the quarter ended March 2013.
Further NPLs on leasing, higher purchase and loans have come down to 4.41 percent quarter on quarter due to aggressive recovery techniques adopted by the company.
Return on equity has improved to 5.54 percent from -13.88 percent and return on assets is up by 83 percent from -4.09 percent to 1.25 percent YoY. Commenting on company’s improvement, Multi Finance Chief Executive Officer Pushpike Jayasundera said the total re-structuring of the company, introducing best practices in the industry, BPR carried out with regard to most of its processes were the key factors to achieve this significant results in the quarter.