Average Profit Of Finance Companies Drops By 38 Percent
May 1, 2022 | 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 adequate return on investment to the shareholders.
Note: The profit of finance companies is based on the unaudited third quarterly report of the fiscal year 2078/79. After the audit, the numbers may vary.
The table below ranks the finance companies of Nepal based on the Net profit.
Net Profit Of Finance Companies In Nepal
| S.N. | Finance Company | Stock Symbol | Q3, FY 2078/79 | Q3, FY 2077/78 | Percent Change |
| 1 | Best Finance Company Ltd. | BFC | 15.26 | 7.11 | 114.63 |
| 2 | ICFC Finance Limited | ICFC | 12.39 | 17.79 | -30.35 |
| 3 | Manjushree Finance Ltd. | MFIL | 11.3 | 37.51 | -69.87 |
| 4 | Goodwill Finance Co. Ltd. | GFCL | 11.08 | 15 | -26.13 |
| 5 | Gurkhas Finance Ltd. | GUFL | 9.49 | 27.37 | -65.33 |
| 6 | Shree Investment Finance Co. Ltd. | SIFC | 7.1 | 7.92 | -10.35 |
| 7 | Janaki Finance Ltd. | JFL | 5.24 | 1.47 | 256.46 |
| 8 | Pokhara Finance Ltd. | PFL | 4.82 | 10.84 | -55.54 |
| 9 | Central Finance Co. Ltd. | CFCL | 4.14 | 7.06 | -41.36 |
| 10 | Guweshowori Merchant Bank & Finance Co. Ltd. | GMFIL | 4.06 | 7.58 | -46.44 |
| 11 | Reliance Finance Ltd. | RLFL | 3.82 | 8.68 | -55.99 |
| 12 | Nepal Finance Ltd. | NFS | 3.2 | 0.35 | 814.29 |
| 13 | Progressive Finance Limited | PROFL | 1.6 | 3.59 | -55.43 |
| 14 | Samriddhi Finance Company Limited | SFCL | 0.28 | 0.54 | -48.15 |
| 15 | Multipurpose Finance Company Limited | MPFL | 0.05 | 0.3 | -83.33 |
| Total | 93.83 | 153.11 | -38.72 |
Source: Unaudited Q3 report, FY 2078/79
Conclusion
As presented in the table above, Best Finance Company has the highest profit of Rs. 15.26 crores in the nine months period. ICFC Finance Ltd is second with a profit of Rs 12.39 crores. Similarly, Manjushree Finance has the profit of Rs 11.30 crores. On the other hand, Multipurpose Finance Company has the lowest profit of Rs 5 lakhs.
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