Multi Finance goes from loss to profit by end March 2014
View(s):Multi Finance PLC has reported a turnaround of its results for the fourth quarter ended 31 March 2014, recording a net profit of Rs.18.6 million against a Rs.54.7 million loss year on year (YoY) in 2012-2013.
In a media release, the finance company said that during the quarter under review, net income from operations reached Rs. 39.9 million, 71 per cent up compared to the quarter ended 03/2013. The net interest income for the quarter ended 03/14 also increased by 24 per cent to Rs. 31.7 million. Operating expenses of the company fell to Rs. 35.5 million against Rs. 41.4 million in the previous year due to strict cost control mechanisms adopted.
“Most significant is that the company’s net impairment has recorded an outstanding improvement of 198 per cent which is a reversal of Rs. 12.6 million as against a charge of Rs. 12.8 million in the quarter ended March 2013. Further NPLs on leasing, HP an loans have come down to 4.41 per cent quarter on quarter due to aggressive recovery techniques adopted by the company,” the release said.
Earnings per share of the company also improved. Commenting on company’s improvement, 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.