Hulas Finserv has a distributable profit of Rs 77 crore
Kathmandu. Shekhar Golchha’s Hulas Finserv Hire Purchase has made a net profit of Rs 39.87 crore in the last fiscal year. The profit increased by 84.45 percent compared to the corresponding period of the previous FY.
According to the unaudited financial statements for the fourth quarter of fiscal year 2082÷83 published by Hulas Finserv, the company has made significant progress in business expansion and profit. The company had posted a net profit of Rs 21.
61 crore in the previous fiscal year.
In just one year, the size of Hulas Finserv’s business increased by one-third, resulting in an increase in both net interest income and profit. Hulas Finserv is a Hire Purchase Loan Company licensed by Nepal Rastra Bank.
The company has been providing hire purchase service to its customers since 2012.
The company is preparing to issue 20,75,000 units of primary shares (IPO) through book building.
The company had appointed NMB Capital as its issue manager for the IPO issuance two years ago.
Golchha Group, a company that specializes in providing ‘Insta Finance’ services to its customers. The company has a paid-up capital of Rs 83 crore.
Two-wheeler, three-wheeler, four-wheeler, mobile phone, consumer electronics, laptop and furniture are available in the country.
Hulas has pledged to ease the shopping process for its customers through competitive interest rates and innovative installment facilities.
Established in 2012, Hulas Investment Company was renamed Hulas Finserv in 2021 and Hulas Finserv Hire Purchase in November 2023. Hansraj Hulaschand & Co. Pvt. Ltd. holds 85 percent stake in the company while the remaining 15 percent is owned by six companies, including Hulas Autocraft and Him Electronics.
HH & Co. is the authorized distributor of Bajaj motorcycles in Nepal.
Shekhar Golchha is the Chairman and Managing Director of the company. The net interest income of the company increased from Rs. 22.1
0 crore to Rs. 48.23 crore in the last fiscal year, which is a reflection of the improvement in the company’s core business. Similarly, total loans increased by 52 percent to Rs 12.21 billion from Rs 8.02 billion.
The company has achieved great success in controlling non-performing loans. The non-performing loan ratio has come down to 1.87 percent from 3.40 percent in the previous year. Despite the challenging economic environment, the management has been able to reduce bad loans due to effective recovery process.
The company’s earnings per share rose to Rs 48.04 on the back of a sharp increase in net profit.
Whereas at the end of the last fiscal year, EPS was only Rs 26.04.
The company has net worth per share of Rs 227.46, return on equity of 21.12%, cost of funds of 5.77% and interest rate spread of 3.39%.
The company’s ordinary reserve stood at Rs 28.39 crore as of mid-July 2018.
The distributable profit is Rs. 77.40 crores in the last fiscal year after adding the accumulated profit of the previous fiscal year. It can distribute 93 percent dividend from the total accumulated profit.
According to the company, the company has delivered strong financial performance despite the country’s uncomfortable economic conditions and liquidity contraction.
“We have been able to maintain asset quality due to the tightening of underwriting standards and early recovery efforts,” the company said in the report.
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