Multi Finance records a significant profit for the last quarter
Monday, 9 June 2014 00:00
Multi Finance PLC reported a total turnaround of its results for the fourth quarter ended 31 March recording a net profit of Rs. 18.6 million, against a Rs. 54.7 million loss year-on-year (YoY), as per its published accounts.
During the quarter under review, net income from operations reached Rs. 39.9 million, 71% growth compared to the quarter ended 03/2013 which was recorded as Rs. 23.3 million. The net interest income for the quarter ended 03/14 also increased with 24% reaching Rs. 31.7 million, compared to Rs. 25.6 million YoY owning to improvements in quality lending and strict credit processes introduced. Operating expenses of the company fell to Rs. 35.5 million as against Rs. 41.4 million 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 million as against a charge of Rs. 12.8 million 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 to Rs. 3.32 against a loss per share of Rs. 9.74 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 up by 83% from -4.09% to 1.25%YoY.
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.
“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 million, 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 in order to harness the best possible output. At the same time its staff was motivated and directed to increase its output per employee by recruiting able experience personnel from top performing financial and banking institutions. Further, new innovative products were introduced to increase volumes during this period. “The confidence placed by our valued customers helped Multi Finance to achieve improved performances and we expect to continue this growth by supporting our customers and expand our product portfolio and reach,” Jayasundera said.