Manjushree Finance (MFIL) has released its third-quarter report for the current fiscal year, unveiling a decline in net profit compared to the corresponding period of the previous fiscal year.
During the review period, the company reported a net profit of Rs 150.9 million, reflecting a decrease of 12.07 percent from Rs 171.7 million earned in the same period last fiscal year.
Despite an increase in net interest income, the company faced challenges stemming from heightened impairment charges, which contributed to the decline in net profit.
Throughout the review period, Manjushree Finance witnessed a 7.23 percent surge in net interest income and a substantial 34.70 percent growth in net fee and commission income. However, the total operating income saw a moderate increase of 10.61 percent, juxtaposed with a 10.21 percent decline in operating profit.
The company reported a distributable profit of Rs 20.8 million, indicating its commitment to providing returns to stakeholders amidst challenging market conditions.
In addition to the decline in net profit, the company’s Earnings Per Share (EPS) also experienced a decrease, falling by Rs 2.04 to Rs 14.90. However, Manjushree Finance maintains a solid net worth per share of Rs 159.75 and a Price/Earnings (P/E) ratio of 33.89 times.
With a paid-up capital of Rs 1.35 billion and a robust reserve fund amounting to Rs 807.6 million, Manjushree Finance continues to uphold its financial stability. Notably, the company amassed deposits totaling Rs 15.43 billion and extended loans amounting to Rs 13.25 billion during the period, reaffirming its pivotal role in facilitating financial services and driving economic growth.
As Manjushree Finance navigates through operational challenges, strategic initiatives and prudent financial management will be pivotal in sustaining profitability and fostering long-term value for its stakeholders.
