Jakarta - PT Radana Bhaskara Finance Tbk (HDFA) posted a net profit of Rp 7.2 billion in the first quarter of 2021. This profit was obtained after the issuer of financing recorded consecutive losses for 3 years.
Based on company records, net profit of Rp 7.2 billion is up 154% from the same position the previous year (yoy) with a loss of Rp 13.3 billion.
"The growth in net profit is inseparable from Radana Finance's success in conducting business transformation in 2020 where business processes were refined so that operational costs could be reduced by 45% to Rp 11 billion from the same position the previous year (yoy) of Rp 20 billion. " said HDFA Finance Director, Rizalsyah Riezky in his official statement quoted on Friday (14/5/2021).
Rizalsyah said that another factor driving Radana Finance's business growth was the change in the Company's mission to always support the economic growth of SMEs in Indonesia.
Radana Finance, said Rizalsyah, began to shift from consumptive financing in the form of multipurpose motorcycle and used car financing to productive financing in the form of factoring financing and investment financing with asset guarantees for SME customers in Indonesia.
"This is reflected in the composition of the Company's portfolio which at the beginning of 2020 had a composition of around 80% consumptive financing and around 20% productive financing, to around 15% consumptive financing and 85% productive financing in the first quarter of 2021," he said.
On the same occasion, Operational Director of Radana Finance Arif Budiman added that Radana Finance continues to improve overall business processes, especially in the acquisition and management of receivables to ensure good quality of receivables.
"Until March 2021, the NPF-gross level for the productive portfolio is maintained at below 1%. This makes the overall NPF-net figure maintained at 0% in the first quarter of 2021 from the same position previously at 4.5%," said Wise.
In terms of financial position, the Company recorded a decline in total assets of 34% (yoy) to Rp 749 billion from the same position previously of Rp 1.1 trillion. However, financing receivables increased slightly by 2% (yoy) to Rp 434 billion from the previous position of Rp 425 billion. This keeps the FAR (Financing to Asset Ratio) ratio maintained at 53%. Liabilities in the first quarter of 2021 recorded a decline of 58% (yoy) to Rp 235 billion from the previous position of Rp 555 billion. This was due to a decrease in debt to banks to Rp 152 billion from Rp 451 billion, down by 58% (yoy). Equity in the first quarter of 2021 was recorded at Rp 513 billion, down 11% (yoy) from the previous period of Rp 578 billion.
Radana Finance targets new financing of Rp 1.5 trillion in 2021. To achieve this financing target, the Company will continue to strengthen its 2 main productive financing products, namely factoring financing and asset-based investment financing. As for the current investment financing, the company focuses on productive business assets such as commercial trucks and heavy equipment for new, used and refinancing units.
"Penetrating financing products during the pandemic certainly has its own challenges, especially since this pandemic has occurred in almost all business sectors. However, we believe that the COVID-19 pandemic is an opportunity for Radana Finance to become a reliable partner and trusted friend for business actors who need solutions. finance," said Arif.
