KFC Q1 net profit soars 45% year on year to Rs38.74cr

THIRUVANANTHAPURAM: The Kerala Financial Corporation (KFC), the Kerala Government owned non-banking financial company (NBFC) has recorded a net profit of Rs38.74 crore for the first quarter ending June 30, 2024 (Q1-FY25).

This is 45 per cent higher than Rs26.71 crore the company logged for the same quarter a year ago.

The total income earned by KFC for the period at Rs212.50 crore was 16.20 per cent higher than that earned for the same period in the earlier year, at Rs182.89 crore.

Paid-up capital

While the paid-up capital was increased from Rs426.50 crore to Rs726.50 crore by the government by the injection of Rs300 crore in two installments, the net worth improved from Rs952.41 crore to Rs1,102.26 crore during the said period, reflecting a growth  of about 16 per cent.

The 70 per cent increase in paid-up capital during the past one year has impacted the earnings per share, which has dropped to Rs5.33 (not annualised) from Rs6.25 a year ago.

Debt up

“With an outstanding debt to the tune of Rs7,074.74 crore as of June 30, 2024, the leverage ratio still stands at a high of about 7 times,” said an analyst while talking to businessbenchmark.news.

However, the company enjoys a decent capital adequacy ratio (CAR) of 25.98 per cent, marginally up from 24.19 per cent a year ago.