NPR Finance Reports Lower Revenue but Maintains Profitability in Latest Quarter
NPR Finance Ltd., a Kolkata-based NBFC, reported a 93.13% year-over-year decline in total income to ₹12.55 crore for the quarter. Despite the revenue drop, the company remained profitable with a net profit of ₹14.42 crore, down 35.85% from the previous year. The company improved from a loss of ₹8.80 crore in the previous quarter to a profit, indicating effective cost management. NPR Finance plans to cautiously expand its financing activities and has made changes to its board of directors.
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NPR Finance Ltd. , a Kolkata-based non-banking financial company (NBFC), reported total income of ₹12.55 crore for the quarter, compared to ₹182.66 crore in the same quarter last year, marking a significant 93.13% decline. Despite the sharp drop in revenue, the company managed to remain profitable, with net profit standing at ₹14.42 crore versus ₹22.48 crore in the previous year.
Key Financial Highlights
- Total income declined 93.13% year-over-year to ₹12.55 crore
- Net profit decreased 35.85% to ₹14.42 crore
- Earnings per share fell to ₹0.24 from ₹0.38
- Improved from a loss of ₹8.80 crore in the previous quarter
| Metric | Current Quarter | Previous Year Quarter | Change |
|---|---|---|---|
| Total Income | 12.55 | 182.66 | -93.13% |
| Net Profit | 14.42 | 22.48 | -35.85% |
| EPS | 0.24 | 0.38 | -36.84% |
The substantial decline in revenue suggests potential challenges in NPR Finance's core lending business. However, the company appears to have implemented effective cost management measures to maintain profitability despite the revenue headwinds.
Notably, NPR Finance improved its performance compared to the previous quarter, swinging from a loss of ₹8.80 crore to a profit of ₹14.42 crore. This indicates the company's efforts to optimize operations and manage expenses are yielding results.
Business Segments and Outlook
NPR Finance operates primarily in financing activities, including group loans, personal loans, and inter-corporate deposits. The company also has interests in the real estate sector.
In its latest corporate filings, NPR Finance stated it is "looking forward to follow a steady and cautious approach in expanding its financing activities in near future." This suggests the company is taking a measured approach to growth given the current economic environment.
The sharp decline in revenue may prompt NPR Finance to explore new avenues for business expansion. The company mentioned it "is desirous to pool its resources in expanding its NBFC activities on a larger scale" which could help boost its finance division going forward.
Corporate Governance Updates
At its recent Annual General Meeting, NPR Finance shareholders approved the following:
- Re-appointment of Mr. Ashok Dhirajlal Kanakia as an Independent Director for another five-year term
- Appointment of Mr. Ashok Kumar Singhania as an Independent Director for a five-year term
These board changes aim to strengthen NPR Finance's corporate governance and bring in additional expertise as the company navigates the current challenging business environment.
While NPR Finance faces headwinds in terms of revenue growth, its ability to remain profitable and improve quarter-over-quarter performance demonstrates resilience. The company's focus on cautious expansion and cost management will be key factors to watch in the coming quarters as it works to revitalize growth in its core lending business.
Historical Stock Returns for NPR Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.78% | +1.01% | +3.37% | +8.04% | +1.96% | +114.54% |
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