Profit of Finance Companies Plunges | 8 Companies Report Loss in Q1
November 17, 2023 | Investopaper
Profit is the major indicator for any business operation. Higher profitability is associated with the success of the business venture. Net Profit is the income available for the distribution to the shareholders after deducting all the operating expenses along with taxes. Hence, it is essential that the company generates decent profit in order to provide an adequate return on investment to the shareholders.
In the first quarter of the current fiscal year 2080/81, fifteen finance companies have reported a total loss of Rs. 6.73 crores. This is 141 percent lower than the profit of the previous year. In the same period of the previous fiscal year 2079/80, these companies had posted an aggregate profit of Rs. 16.08 crores.
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The table below ranks the finance companies of Nepal based on net profit.
Net Profit Of Finance Companies In Nepal [Q1, FY 2080/81]
Net Profit ‘In Rs. Crores’
| S.N. | Finance Company | Stock Symbol | Q1, FY 2080/81 | Q1, FY 2079/80 | Percent Change |
| 1 | Manjushree Finance Ltd. | MFIL | 8.27 | 7.11 | 16.32 |
| 2 | Gurkhas Finance Ltd. | GUFL | 6.16 | 3.33 | 84.98 |
| 3 | Reliance Finance Ltd. | RLFL | 5.39 | -4.25 | -226.82 |
| 4 | ICFC Finance Limited | ICFC | 0.93 | 3.33 | -72.07 |
| 5 | Multipurpose Finance Company Limited | MPFL | 0.65 | 0.04 | 1525.00 |
| 6 | Janaki Finance Ltd. | JFL | 0.04 | 0.24 | -83.33 |
| 7 | Shree Investment Finance Co. Ltd. | SIFC | 0.03 | 0.28 | -89.29 |
| 8 | Samriddhi Finance Company Limited | SFCL | -0.98 | -3.14 | -68.79 |
| 9 | Best Finance Company Ltd. | BFC | -1.98 | 0.59 | -435.59 |
| 10 | Nepal Finance Ltd. | NFS | -2.02 | 0.81 | -349.38 |
| 11 | Central Finance Co. Ltd. | CFCL | -2.61 | 0.93 | -380.65 |
| 12 | Goodwill Finance Co. Ltd. | GFCL | -3.5 | 3.84 | -191.15 |
| 13 | Guheshwori Merchant Bank & Finance Co. Ltd. | GMFIL | -5.39 | 0.22 | -2550.00 |
| 14 | Pokhara Finance Ltd. | PFL | -5.61 | 0.46 | -1319.57 |
| 15 | Progressive Finance Limited | PROFL | -6.11 | 2.29 | -366.81 |
| Total | -6.73 | 16.08 | -141.85 |
Source: Unaudited Q1 Report, FY 2080/81
Conclusion
Among the finance companies in Nepal, Manjushree Finance has the highest net profit of Rs. 8.27 crores. Gurkhas Finance is second to Manjushree Finance in terms of net profit with Rs 6.16 crores. On the other hand, Progressive Finance has the net loss of Rs 6.11 crores.
Note: The net profit of finance companies is based on the unaudited first-quarterly report of the fiscal year 2080/81. After the audit, the numbers may vary.
