Himalayan Laghubitta's Q4 Profit Jumps 49%, EPS Climbs to Rs. 31.26
Mon, Aug 3, 2026 11:30 AM on Financial Analysis, Highlight News, Company Analysis,
Himalayan Laghubitta Bittiya Sanstha Limited (HLBSL) has published its unaudited financial results for the fourth quarter of fiscal year 2082/83, reporting a strong improvement in profitability. The microfinance institution recorded a net profit of Rs. 10.66 crore, representing a 49.18% increase from Rs. 7.14 crore in the corresponding period of the previous fiscal year. The growth was largely driven by higher net interest income and a lower cost of funds.
The company's net interest income climbed 19.22% year-on-year to Rs. 44.21 crore, while operating profit rose 44.39% to Rs. 15.21 crore from Rs. 10.54 crore a year earlier. Reflecting the stronger earnings, earnings per share (EPS) increased to Rs. 31.26, up from Rs. 22.34 in the same period last year.
On the balance sheet, loans and advances expanded by 1.37% to Rs. 4.96 billion, while customer deposits grew 15.15% to Rs. 1.27 billion. The institution also reported a significant recovery in retained earnings, which reached Rs. 9.25 crore, compared to Rs. 3.86 crore in the previous fiscal year. Likewise, reserves increased 23.92% to Rs. 15.36 crore.
Despite the strong earnings performance, asset quality weakened during the review period. The Non-Performing Loan (NPL) ratio rose from 7.48% to 9.04%, reflecting a 20.86% deterioration. Likewise, impairment charges surged 58.97%, indicating higher provisioning against potential loan losses. Meanwhile, the Capital Adequacy Ratio (CAR) declined from 11.18% to 8.54%, suggesting a weaker capital buffer and an area investors may monitor closely.
On a positive note, the cost of funds declined 14.35% to 5.55% from 6.48%, supporting stronger interest margins. The company's net worth per share also improved by 9.69% to Rs. 162.52. As of the end of the fourth quarter, HLBSL's price-to-earnings (P/E) ratio stood at 27.82 times, based on a market price of Rs. 869.40.
Major Highlights:
| Particulars (In Rs '000) | Himalayan Laghubitta | ||
| Q4 2082/83 | Q4 2081/82 | Difference | |
| Paid Up Capital | 341,086.04 | 319,818.13 | 6.65% |
| Share Premium | 45,543.05 | 45,543.05 | 0.00% |
| Retained Earnings | 92,521.02 | 38,651.24 | 139.37% |
| Reserves | 153,659.94 | 123,995.48 | 23.92% |
| Deposits | 1,272,164.23 | 1,104,750.90 | 15.15% |
| Loans and Advances | 4,962,718.64 | 4,895,696.50 | 1.37% |
| Net Interest Income | 442,191.02 | 370,894.23 | 19.22% |
| Personal Expenses | 197,256.39 | 197,715.10 | -0.23% |
| Impairment Charges/(Reversal) for loans and advances | 60,772.24 | 38,228.95 | 58.97% |
| Operating Profit | 152,196.55 | 105,406.04 | 44.39% |
| Net Profit | 106,610.03 | 71,462.44 | 49.18% |
| Distributable Profit/(loss) after P/L Appropriation and Regulatory Adjustments | 92,521.02 | 0.00 | 0.00% |
| Capital Adequancy(%) | 11.18 | 8.54 | 30.91% |
| Non-Performing Loan | 9.04 | 7.48 | 20.86% |
| Cost of Fund | 5.55 | 6.48 | -14.35% |
| EPS (In Rs.) | 31.26 | 22.34 | 39.88% |
| Net Worth per Share (In Rs.) | 162.52 | 148.16 | 9.69% |
| Qtr end PE Ratio (times) | 27.82 | - | 1.00% |
| Qtr End Market Price | 869.4 | - | - |
