Home / Business / Why Did The Bottom Line Decline For ICFC Finance Limited In Q3 Despite Growth In Core Business Revenue?

Why Did The Bottom Line Decline For ICFC Finance Limited In Q3 Despite Growth In Core Business Revenue?

ICFC Finance Limited (ICFC) reported a Net Profit of Rs. 12.39 crores in Q2 of FY 2078/2079. This is a decline of 30.32% compared to the corresponding quarter of the previous year.

The decline in Net Profit is due to the variation in other operating income in this quarter.

It reported a net interest income (core business revenue) of Rs. 31.65 crores in Q2. This is an increment of 37.98% 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. 16.43 Arba while it has mobilized loans and advances of Rs. 13.82 Arba till Q2 of FY 2078/2079.

ICFC Finance has a paid-up capital of Rs. 1.12 Arba and reported Rs. 54.66 crores reserve in this quarter.

The Earnings per Share (annualized) stood at Rs. 14.67 and net worth per share stands at Rs. 148.5. The Company traded at a P/E multiple of 35.93 times.

Click here for the Q3 report

Major Highlights:

Particulars ICFC Finance Limited
Q3, 2078/2079 Q3, 2077/2078 Difference
Paid-Up Capital 1,127,115.20 1,024,265.80 10.04%
Reserve & Surplus 546,659.98 605,860.07 -9.77%
Deposit from Customers 16,437,631.53 14,342,810.85 14.61%
Loans & Advances 13,822,689.00 10,371,512.01 33.28%
Net Interest Income 316,508.06 229,392.56 37.98%
Impairment Charge/(Reversal) for loans 57,488.15 29,931.44
Operating Profit 172,490.61 253,847.47 -32.05%
Net Profit 123,998.44 177,950.62 -30.32%
Capital Adequacy (%) 12.50% 13.38%
NPL (%) 1.24% 0.51%
Cost of fund (%) 8.94% 6.60%
EPS (Rs.) 14.67 23.16
Net worth per share (Rs.) 148.50 159.15
Qtr end PE ratio (Times) 35.93
Qtr End Market Price 527

Leave a comment

Check Also

Govt decides to reduce tax on petroleum products

KATHMANDU, May 27: The government has decided to reduce the infrastructure tax on petroleum products. ...