MPFL
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By Sandeep Chaudhary

Multipurpose Finance Limited Q4 Reports Stable Growth with Improving Asset Quality

Multipurpose Finance Limited Q4 Reports Stable Growth with Improving Asset Quality

Multipurpose Finance Limited (MPFL) has published its audited Q4 results for FY 2024/25, highlighting moderate revenue growth, controlled costs, and steady asset quality improvement despite margin pressures.

The company recorded total revenue of Rs. 263.97 million, a 9.97% year-over-year increase compared to Rs. 236.27 million in Q4 2023/24. Revenues grew consistently quarter-over-quarter, supported by stable loan operations. Gross profit stood at Rs. 87.60 million, translating into a margin of 33.19%, slightly lower than last year’s 38.20% but stable across recent quarters.

Net income reached Rs. 23.32 million, up from Rs. 20.34 million in the same quarter last year, reflecting an 8.84% net margin. Though profitability margins compressed compared to earlier quarters (Q1: 23.37%), the bottom-line growth underscores efficient cost and provision management.

For shareholders, EPS (annualized) stood at Rs. 3.82, slightly above last year’s Rs. 3.33 but lower than mid-year peaks. The PE ratio was high at 168.01, indicating overvaluation relative to earnings. Book Value per Share improved to Rs. 126.01, up from Rs. 114.50 in Q4 2023/24. The market remained confident, with the share price closing at Rs. 642.20, significantly higher than last year’s Rs. 529.50.

Financial Indicators

MPFL’s sectoral indicators show both strengths and risks:

  • Capital Fund to RWA declined to 15.91% from last year’s 36.30%, signaling reduced capital buffer but still above the regulatory minimum.

  • NPL Ratio rose to 5.47%, higher than last year’s 4.60%, reflecting slight asset quality pressure.

  • Positively, Loan Loss Provision coverage improved to 103.65%, indicating strong risk management and full coverage of bad loans.

  • Cost of Funds decreased to 6.03%, down from 8.39% a year ago, reflecting easing liquidity pressure.

  • Credit-to-Deposit Ratio improved to 59.51%, compared to 77.30% last year, suggesting better liquidity management.

  • Base Rate fell to 9.50%, from 11.87% last year, making borrowing cheaper and more competitive.

  • Net Interest Spread remained stable at 4.58%, sustaining profitability in core lending activities.

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