Progressive Finance Reports Strong Recovery in Q4 Despite Revenue Decline

Progressive Finance Limited has published its audited fourth-quarter results for FY 2024/25, showing a notable recovery in profitability despite a year-on-year dip in total revenue. The company recorded a revenue of Rs. 593.8 million in Q4, down 15.94% compared to the same quarter last year. On a quarter-on-quarter basis, revenue also fell by 15.52% from Q3’s Rs. 447.2 million, indicating challenges in sustaining top-line growth. However, despite the revenue pressure, gross profit rose to Rs. 185.3 million, reflecting an improved margin of 31.21%, higher than last year’s 24.42%, signaling better cost efficiency and operational control.

Net income surged to Rs. 111.9 million in Q4, reversing the loss of Rs. 38 million recorded in the same quarter last year. This sharp turnaround pushed the net profit margin to 18.85%. Earnings per share (EPS) for the quarter stood at Rs. 13.20 on an annualized basis, a significant improvement from last year’s negative EPS of Rs. 4.49. The company’s return on equity (ROE) improved to 19.04%, while return on assets (ROA) also strengthened to 1.45%, highlighting better asset utilization. Book value per share increased to Rs. 79.24, up from Rs. 45.33 last year, reflecting a stronger capital base. Meanwhile, the market value of its share stood at Rs. 521.87, with a reported price-to-earnings (P/E) ratio of 39.54.

From the financial sector indicators, Progressive Finance demonstrated healthy capital adequacy with a Capital Fund to Risk-Weighted Assets (RWA) ratio of 12.92%, above the regulatory minimum. Asset quality improved substantially as the Non-Performing Loan (NPL) ratio fell to 4.44% from 7.15% in the previous quarter. Total loan loss provision coverage also improved to 102.07%, ensuring stronger risk buffers. Cost of funds decreased to 5.13%, compared to 7.32% last year, reflecting effective resource mobilization. The Credit-to-Deposit ratio stood at 72.73%, remaining within Nepal Rastra Bank’s prudential guidelines. Similarly, base rate reduced to 8.64% from 10.69% a year ago, easing borrowing conditions, while net interest spread remained stable at 4.55%.

Liquidity remained comfortable with Net Liquid Assets at 29.85%, ensuring sufficient flexibility to meet short-term obligations. Overall, Progressive Finance’s Q4 results highlight a significant operational and financial turnaround, with strong bottom-line performance, improved asset quality, and better cost management despite declining revenues. The company’s ability to sustain profitability while maintaining regulatory compliance puts it in a stable position heading into the next fiscal year.