Reliance Finance Q4 Results: Revenue Rs. 808M, Net Profit Rs. 42.7M, EPS at 3.81
Author
Nepsetrading
Reliance Finance Limited (RLFL) has released its audited financial results for the fourth quarter of fiscal year 2024/25, showing a strong recovery with positive earnings after three consecutive loss-making quarters.
The company’s total revenue stood at Rs. 808.41 million in Q4, slightly lower than Rs. 918.97 million in the same period last year, reflecting a YoY decline of 9.6%. However, compared to previous quarters, revenue has grown steadily, supported by increased loan portfolio activities.
Gross profit improved to Rs. 240.22 million from Rs. 217.61 million a year earlier. The gross margin also expanded to 29.72% from 23.68%, highlighting improved cost efficiency.
On the bottom line, RLFL turned profitable with a net income of Rs. 42.70 million in Q4, compared to a net profit of Rs. 28.92 million in Q4 last year. This is a major recovery after heavy losses of Rs. 174.71 million in Q3 and Rs. 119.74 million in Q2. The net profit margin stood at 5.28%, compared to a negative 30.45% in the previous quarter.
For shareholders, EPS (annualized) improved to Rs. 3.81, compared to Rs. 2.58 last year, while the PE ratio stood at 132.43, reflecting high valuations relative to modest earnings. The book value per share increased to Rs. 110.09, up from Rs. 102.83 last year, while the market price per share reached Rs. 504.27, also higher than last year’s Rs. 459.00, indicating investor confidence in the turnaround.
In the financial sector indicators, RLFL’s Capital Fund to RWA rose sharply to 15.24% from 13.03%, strengthening its capital adequacy position. The NPL ratio improved significantly to 9.00% from 16.08% in Q3, though still higher than last year’s 6.63%. Meanwhile, loan loss provision coverage increased to 68.22% from 55.68% last quarter. The cost of funds decreased to 5.91%, while the base rate dropped to 8.40%. The net interest spread remained healthy at 4.45%.
Overall, Reliance Finance Limited has returned to profitability with stronger margins, higher capital adequacy, and improved NPL coverage. While challenges remain with asset quality, the Q4 results indicate a positive turnaround with renewed investor confidence.
