Profit of Finance Companies Rises to Rs. 44.63 Crores | 4 Companies Report Loss
August 9, 2024 | 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 last fiscal year 2080/81, fourteen finance companies have reported a total profit of Rs. 44.63 crores. This is 457 percent higher 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. 8.01 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 [FY 2080/81]
Net Profit ‘In Rs. Crores’
| S.N. | Finance Company | Stock Symbol | FY 2080/81 | FY 2079/80 |
| 1 | Manjushree Finance Ltd. | MFIL | 26.58 | 24.69 |
| 2 | Goodwill Finance Co. Ltd. | GFCL | 14.84 | -9.23 |
| 3 | ICFC Finance Limited | ICFC | 11.86 | 15.45 |
| 4 | Gurkhas Finance Ltd. | GUFL | 10.89 | -0.23 |
| 5 | Shree Investment Finance Co. Ltd. | SIFC | 6.68 | 7.5 |
| 6 | Reliance Finance Ltd. | RLFL | 2.89 | -18.26 |
| 7 | Multipurpose Finance Company Limited | MPFL | 2.03 | 0.86 |
| 8 | Nepal Finance Ltd. | NFS | 1.81 | 2.01 |
| 9 | Guheshwori Merchant Bank & Finance Co. Ltd. | GMFIL | 1.54 | 6.48 |
| 10 | Best Finance Company Ltd. | BFC | 0.04 | 0.86 |
| 11 | Progressive Finance Limited | PROFL | -3.8 | -29.02 |
| 12 | Central Finance Co. Ltd. | CFCL | -6.38 | 4.11 |
| 13 | Pokhara Finance Ltd. | PFL | -10.64 | 2.38 |
| 14 | Janaki Finance Ltd. | JFL | -13.71 | 0.41 |
| 15 | Samriddhi Finance Company Limited | SFCL | – | – |
| Total | 44.63 | 8.01 |
Source: Unaudited Q4 Report, FY 2080/81
Conclusion
Among the finance companies in Nepal, Manjushree Finance has the highest net profit of Rs. 26.58 crores. Goodwill Finance is second to Manjushree Finance in terms of net profit with Rs 14.84 crores. On the other hand, Janaki Finance has the net loss of Rs 13.71 crores.
Note: The net profit of finance companies is based on the unaudited fourth-quarterly report of the fiscal year 2080/81. After the audit, the numbers may vary.
