Finance Companies Post Strong Q2 Turnaround, Sector Shifts from Loss to Profit

Nepal’s finance companies reported a notable improvement in their financial performance in the second quarter of the current fiscal year. While the combined net result of 15 NEPSE-listed finance companies stood at a loss of NPR 730.2 million in the same period last year, it turned positive at NPR 327.7 million this year. The number of loss-making companies declined from six to just three. Among them, Manjushree Finance posted the highest net profit of NPR 135.3 million, followed by Goodwill Finance with NPR 111.7 million and Gurkhas Finance with NPR 61.6 million, alongside other profitable firms including Central, ICFC, Pokhara, Best, Guheshwori Merchant & Finance, and Shree Investment & Finance. Compared to last year, net profits of 10 finance companies increased by 14 percent to as high as 2,472 percent, with Gurkhas Finance recording the highest growth, while Nepal Finance saw the sharpest decline. In terms of earnings per share, Goodwill Finance and Manjushree Finance reported EPS above NPR 20, Gurkhas Finance stood at NPR 14.21, whereas Janaki Finance, Progressive Finance, and Nepal Finance posted negative EPS during the period.