Hulas Finserve Hire Purchase posts colossal profit of over 950 percent

KATHMANDU, MARCH 24: Hulas Finserve Hire Purchase Limited has recorded a whopping 972% increase in net profit in the last fiscal year 2023/24.

In the previous fiscal year 2022/23, the company earned a net profit of Rs 9.157 million. However, in the last fiscal, its net profit surged to Rs 981.96 million. Additionally, the company's retained earnings  stood at Rs 4.449 billion, while it generated Rs 137.4 million in income from interest alone.

The company has a paid-up capital of Rs 800 million and total assets worth NPR 35.5 billion. The asset-to-loan ratio is 1.55 times. The non-performing loan (NPL) ratio stands at 5.75 percent, earnings per share (EPS) at NPR 12.27, and the interest spread rate at 0.20 percent.

The company has taken loans totalling Rs 1.935 billion from three different banks. It has borrowed Rs 951 million from Global IME Bank at an interest rate of 10.40 percent and Rs 8.702 billion at 8.90 percent. Similarly, it has taken a loan of Ts 595 million from Everest Bank at 8.43 percent and Rs 374.5 million from Sanima Bank at 9.70 percent interest.

The company is currently preparing to issue an Initial Public Offering (IPO). It has appointed NMB Capital as the issue manager for the issuance of 2.075 million shares.