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Despite Growth In Core Business Revenue For ICFC What Led To Decline In Net Profit In Q2?

ICFC Finance Limited (ICFC) reported a Net Profit of Rs. 9.65 crores in Q2 of FY 2078/2079. This is a decline of 24.41% compared to the corresponding quarter of the previous year.

It reported a net interest income (core business revenue) of Rs. 20.90 crores in Q2. This is an increment of 32.66% compared to the corresponding quarter of the previous year.

As per the quarterly report, the ICFC reported lower other operating income compared to the corresponding quarter of previous years which led to a decline in operating income.

The bank has collected deposits of Rs. 15.45 Arba while it has mobilized loans and advances of Rs. 12.86 Arba till Q2 of FY 2078/2079.

ICFC Finance has a paid-up capital of Rs. 1.12 Arba and reported Rs. 53 crores reserve in this quarter.

The Earnings per Share (annualized) stood at Rs. 16.44 and net worth per share stands at Rs. 147.03. The Company traded at a P/E multiple of 47.14 times.

Click here for the Q2 report

Major Highlights:

Particulars ICFC Finance Limited
Q2, 2078/2079 Q2, 2077/2078 Difference
Paid-Up Capital 1,127,115.20 1,024,265.80 10.04%
Reserve & Surplus 530,086.71 605,860.07 -12.51%
Deposit from Customers 15,454,838 14,342,811 7.75%
Loans & Advances 12,869,484 10,371,512 24.08%
Net Interest Income 209,043.14 157,579.51 32.66%
Impairment Charge/(Reversal) for loans 31,365.79 37,213.27
Operating Profit 132,239 174,732.90 -24.32%
Net Profit 92,654.73 122,570.42 -24.41%
Capital Adequacy (%) 12.37% 13.88%
NPL (%) 1.06% 0.76%
Cost of fund (%) 7.93% 6.95%
EPS (Rs.) 16.44 23.93
Net worth per share (Rs.) 147.03 159.15
Qtr end PE ratio (Times) 47.14
Qtr End Market Price 775

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