Goodwill Finance reports a significant growth of 67.12% in Operating Profit; EPS slips to Rs 7.71

Goodwill Finance Limited has published the report for 2nd quarter of the fiscal year 2074/75.

The company has earned a net profit of Rs 3.08 crores by the end of 2nd quarter. The net profit was Rs 2.97 crores in the corresponding quarter of the previous fiscal year. This accounts for a meager growth of 3.83%. GFCL now has an eps of Rs 7.72.

A growth is seen both in the interest income and interest expense of the company. The interest income has surged to Rs 28.98 crores, showing a growth of 33.48%. Interest expense too has grown by 67.84% to Rs 22.16 crores. The net interest income has however slipped by 19.86% to Rs 6.81 crores. 

Staff expense has increased slightly to Rs 2.28 crores, showing a growth of 7%. 

Company’s operating profit has increased significantly by 67.12% to Rs 4.47 crores. 

Both deposit collection and lending has shown a balanced growth. Deposit collection has surged to Rs 4.79 arba, up from 3.86 arba last year showing a growth of 24.16%. Company's lending has increased by 24.64% to Rs 4.07 arba.  GFCL has a NPL of 2.21%

Company’s reserve has increased by 17.5% to Rs 14.86 crores. Company now has a networth of Rs 118.59. 

Positive sides:

• Balanced growth in deposit and lending.
• Significant Growth of 67.12% in operating income. 
• Decent growth in net Interest income. 
• Company has an adequate capital with CAR 19.26%

Negative Sides:

• Rise in interest expense.
• Increase in base rate (12.55% now)
• Rise in cost of fund (9.51% now)

Key Ratios:

EPS                : Rs 7.71
Networth         : Rs 118.59
ROE               :  7.72%
ROA               :  0.97%
Cost of Fund  :  9.51%
NPL                :  2.21%
CCD               : 72.78%