Overview
This financial report presents the key metrics of JFL for the first quarter of the fiscal year 2021/2022 compared to previous quarters. The following tables summarize the financial performance, indicating trends, differences, and overall health of the organization.
Financial Metrics Summary
Janaki Finance Limited Financial Report
Key Financial Metrics
| Dimension | Q1 – 081/082 | Q1 – 080/081 | Q4 – 080/081 | Q3 – 080/081 | Q2 – 080/081 | Difference (%) |
|---|---|---|---|---|---|---|
| Paid Up Capital | 69.05 Cr | 69.05 Cr | 69.05 Cr | 69.05 Cr | 69.05 Cr | 0 |
| Reserve | 43.09 Cr | 29.87 Cr | 43.09 Cr | 29.86 Cr | 29.86 Cr | 44.26 |
| Retained Earnings | -65.26 Cr | -34.87 Cr | -72.19 Cr | -45.78 Cr | -34.72 Cr | 87.12 |
| Deposit | 4.37 Arab | 3.58 Arab | 4.03 Arab | 3.85 Arab | 3.72 Arab | 22.14 |
| Loan | 3.09 Arab | 3.13 Arab | 3.15 Arab | 3.17 Arab | 3.16 Arab | -1.12 |
| Net Interest Income | 4.93 Cr | 5.11 Cr | 11.31 Cr | 14.87 Cr | 10.13 Cr | -3.4 |
| Net Fee Commission Income | 1.66 Lac | 1.83 Lac | 55.35 Lac | 5.25 Lac | 3.30 Lac | -8.9 |
| Operating Profit | 9.87 Cr | -26.25 Lac | -13.72 Cr | -10.67 Cr | -8.53 Lac | -3858.03 |
| Net Profit | 6.91 Cr | 4.36 Lac | -13.72 Cr | -10.86 Cr | 19.86 Lac | 15723.26 |
| EPS | 48.42 | 0.28 | -19.87 | -20.98 | 0.58 | 17192.86 |
| Net Worth | 67.90 | 92.75 | 57.86 | 76.94 | 92.97 | -26.79 |
| NPL | 34.64 | 17.60 | 37.13 | 28.91 | 19.99 | 96.82 |
| Total Assets | 6.50 Arab | 5.33 Arab | 6.08 Arab | 5.82 Arab | 5.58 Arab | 21.87 |
| Total Liabilities | 6.03 Arab | 4.69 Arab | 5.68 Arab | 5.29 Arab | 4.94 Arab | 28.51 |
| Cost of Fund | 8.46 | 10.93 | 9.01 | 9.52 | 10.29 | -22.60 |
| Base Rate | 10.53 | 13.28 | 10.99 | 11.69 | 12.57 | -20.71 |
| Interest Spread | 4.74 | 3.98 | 4.39 | 4.28 | 4.72 | 19.10 |
Key Insights
- Stable Paid Up Capital: The paid-up capital has remained constant at 69.05 Cr across all periods, indicating stability in funding.
- Increase in Reserve: A significant increase in reserves from 29.87 Cr to 43.09 Cr suggests improved financial health and retained profits.
- Retained Earnings Concerns: Negative retained earnings increased from -34.87 Cr to -65.26 Cr, indicating challenges in profitability and potential operational issues.
- Deposit Growth: Deposits have risen from 3.58 Arab to 4.37 Arab, reflecting increased customer trust and business growth.
- Net Interest Income Decline: A decline in net interest income from 5.11 Cr to 4.93 Cr is a concerning trend that could impact overall profitability.
- Operating Profit Recovery: After a loss in the previous quarter, operating profit has turned positive to 9.87 Cr, showing signs of operational improvement.
- Surge in Net Profit: The net profit significantly increased from 4.36 Lac to 6.91 Cr, a promising sign of recovery and operational efficiency.
- EPS Improvement: The earnings per share (EPS) improved dramatically to 48.42, suggesting increased profitability on a per-share basis.
- Net Worth and ROE: While the net worth has decreased, the return on equity (ROE) showed a positive figure of 0.27 in the previous quarter, indicating that the company has generated profit from its equity.
- High NPL Ratio: The non-performing loan (NPL) ratio has significantly increased from 17.60 to 34.64, indicating potential risk in the loan portfolio.
Conclusion
JFL demonstrates resilience through increased reserves and deposits while facing challenges with retained earnings and declining net interest income. The recovery in net profit and EPS reflects positive operational changes, but attention is needed on the NPL ratio and sustained profitability. Strategic initiatives focusing on asset quality and income diversification could enhance future financial performance.
