Hulas Finserv Higher Purchase has recorded a massive 84.45 percent growth in net profit to reach Rs 39.87 crore in the last fiscal year while preparing for its upcoming IPO.
Hulas Finserv Higher Purchase, which is led by famous businessman Shekhar Golchha, made a net profit of Rs 39 crore 87 lakh 23 thousand in the last fiscal year 2082/83. This is a very huge rise of 84.45 percent compared to the previous fiscal year. In the earlier fiscal year, company had made a net profit of Rs 21 crore 61 lakh 69 thousand. The profit increased mainly because company expanded its business and its net interest income also went up.
Outstanding Financial Growth
According to the un-audited financial report, the net interest income of company grew from Rs 22 crore 10 lakh to Rs 48 crore 23 lakh. Similarly, its total loan disbursement also increased by 52 percent. It went up from Rs 8 arba 2 crore 55 lakh to Rs 12 arba 21 crore 85 lakh.
The company has also done a great job in controlling bad loans. Its non-performing loan (NPL) ratio, which was 3.40 percent in the previous year, dropped down to 1.87 percent in last fiscal year. With the rise in profits, the earning per share (EPS) of Hulas Finserv went up from Rs 26.04 to Rs 48.04.
Key Financial Ratios and Reserves
The net worth per share of the company stands at Rs 227.46, while the return on equity is 21.12 percent. Its cost of fund is 5.77 percent and the interest rate spread is 3.39 percent.
By the end of Ashar, company has Rs 28 crore 39 lakh in its general reserve. If we combine the profit from last fiscal year and the saved profits from earlier years, the total distributable profit of company reaches Rs 77 crore 40 lakh. Based on this, Hulas Finserv has capacity to distributing up to 93 percent dividend on its current paid-up capital.
About Hulas Finserv and its IPO Plans
Hulas Finserv is a licensed higher purchase loan provider from Nepal Rastra Bank. They have been providing higher purchase services since the year 2012. The company helps customers buy two-wheelers, three-wheelers, four-wheelers, mobile phones, home electronics, laptops, and furniture through easy financing options.
Now, the company, which is a part of the Golchha Group, is preparing to launch 20 lakh 75 thousand units of initial public offering (IPO) through the book building method. For this IPO issue, they already appointed NMB Capital as the issue and sales manager two years ago.
The paid-up capital of company is Rs 83 crore. Hansraj Hulaschand and Company Private Limited owns 85 percent share of the company. The remaining 15 percent shares are owned by Hulas Autocraft, Him Electronics, and six other individuals. Shekhar Golchha is the Chairman and Managing Director of Hulas Finserv.
The company management said that even during tough economic situations and liquidity issues in the country, their financial performance remained very strong. To keep the quality of their assets good, they made underwriting rules very strict and also prioritized collecting payments right from the start.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
