MULTI FINANCE RECORDS SIGNIFICANT PROFIT
Multi Finance PLC reported a total turnaround of its results for the fourth quarter ended March 31, 2014 recording a net profit of Rs. 18.6 Mn, against Rs. 54.7 Mn loss year on year (YoY), as per published accounts.
During the quarter under review, net income from operations reached Rs. 39.9 Mn, 71% growth compared to the quarter ended 03/2013 which was recorded as Rs. 23.3 Mn.
The net interest income for the quarter ended 03/14 also increased with 24% reaching Rs. 31.7 Mn, compared to Rs. 25.6 Mn YoY owning to improvements in quality lending and strict credit processes introduced. Operating expenses of the company fell to Rs. 35.5 Mn as against Rs. 41.4 Mn YoY which is a 14% improvement mainly due to strict cost control mechanisms adopted.
Most significant is that the company's net impairment has recorded an outstanding improvement of 198% which is a reversal of Rs. 12.6 Mn as against a charge of Rs. 12.8 Mn in the quarter ended March 2013.
Further NPLs on leasing, HP and loans have come down to 4.41% quarter on quarter due to aggressive recovery techniques adopted by the company. Earnings per Share of the company have improved from -9.74% to 3.32% within the quarter while improving the company's quality of the asset portfolio. Return on equity has improved to 5.54% from -13.88% and Return on Assets is up by 83% from -4.09% to 1.25%YoY.
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.
"I am happy to announce that Multi Finance team managed to achieve this total turn around recording a significant net profit of Rs 18.6 Mn, up by 134% YoY. This achievement was possible due to the prudent management policies adopted at the right time and dedicated and motivated team said Jayasundera.
The company's had re-engineered its entire processes from lending, recovery to deposits to harness the best possible output.
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