With Decline in Net Profits for Best Finance (BFC) EPS Decreases in Q4
Fri, Aug 4, 2023 11:43 AM on Financial Analysis, Latest,
Best Finance Company Limited (BFC) has published its fourth-quarter report for the recently concluded financial year 2079-80 with a decline in its Net Profits by 76.87 percent. As of FY 2079-80 last quarter, the company has made only Rs. 3.86 crores as opposed to Rs. 16.72 crores that the company had earned in the corresponding quarter of FY 2078-79.
There is a marginal improvement in Net Interest Income—core business revenue—amounting to Rs. 13.09 crores as of the last quarter of the financial year 2079-80. Meanwhile, there is a massive decline of 73.34 percent in the Operating Profit of the company and totaling only Rs. 5.58 crores as of FY 2079-80's end.
The company has incured Rs. 1.31 crores in impairment charges, which has negatively affected the profitability of the company.
The Earnings per Share (EPS) of the company has plummeted to Rs 4.52 from Rs. 20.17 recorded in the last quarter of FY 2078-79, while its Net worth per Share is Rs. 139.71.
The Non-performing Loan (NPL) has also increased to 3.30 percent.
The finance company maintains Rs. 85.48 crores in paid-up capital, while it has Rs. 33.94 crores in reserves and surplus.
Major Financial Highlights:
| Particulars (In Rs '000) | Goodwill Finance Limited | ||
|---|---|---|---|
| Q3 2079/80 | Q3 2078/79 | Difference | |
| Paid Up Capital | 854,816.78 | 828,913.79 | 3.12% |
| Share Premium | 14,947.99 | 3,025.36 | - |
| Retained Earnings | -208,418.20 | -204,414.94 | 1.96% |
| Reserves | 532,906.48 | 562,603.23 | -5.28% |
| Deposits | 4,171,562.81 | 3,605,279.29 | 15.71% |
| Loans & Advances to Customers | 3,590,165.11 | 3,196,003.43 | 12.33% |
| Net Interest Income | 130,925.79 | 126,653.71 | 3.37% |
| Personnel Expenses | 90,098.70 | 97,574.72 | -7.66% |
| Impairment Charges | 13,129.82 | - | - |
| Write Back | 169,710.27 | ||
| Operating Profit | 55,832.28 | 209,414.96 | -73.34% |
| Net Profit | 38,669.45 | 167,201.36 | -76.87% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments (4th Quarter) | -208,418.20 | - | - |
| Capital Adequacy (%) | 21.52 | 23.72 | -9.27% |
| NPL (%) | 3.30 | 2.24 | 47.32% |
| Base Rate (%) | 14.99 | 13.75 | 9.02% |
| Cost of Fund (%) | 10.75 | 9.79 | 9.81% |
| EPS (In Rs.) | 4.52 | 20.17 | -77.57% |
| Net Worth per Share (In Rs.) | 139.71 | 143.58 | -2.69% |
| Qtr End Market Price | 353 | - | - |
