Low recovery due to COVID-19 and lockdown results in 60.15% decline in net profit of Mahuli Laghubitta in Q4

Mahuli Laghubitta Bittiya Sanstha Limited has published its unaudited fourth-quarter report of FY 2076/2077 with a decrease in its net profit by 60.15%. The Net Profit of the company in Q4, 2076/2077 stood at Rs. 2.00 crores compared to Rs. 5.03 crores in the corresponding quarter of the previous year.

As per the management, due to the outbreak of coronavirus and lockdown enforced by the government, affected the daily operations of the company and collection of cost of loans and advances which had an impact on the profitability. The increase in provisions of the company has decreased its operating profit which stood at Rs. 3.53 crores in Q4, 2076/2077 which is a decrease by 43.98% compared to the corresponding quarter of the previous year.

Mahuli Laghubitta’s paid-up capital stood at Rs. 12.24 crores with a reserve and surplus of Rs. 19.40 crores in the fourth quarter. The company’s Reserve and surplus increased by 11.71% in this quarter.

Mahuli Laghubitta has increased its borrowings by 12.05% which stood at Rs. 1.08 Arba in Q4, 2076/2077. Similarly, the company has also increased its loans and advances to Rs. 2.34 Arba; an increase of 13.45% compared to the corresponding quarter of the previous year.

The earnings per share (EPS) of Mahuli stands at Rs. 16.41 and Net worth per share at Rs. 258.49. Similarly, non-performing loans for the company increased to 2.06% in the fourth quarter of FY 2076/2077.

The company is in merger process with Nava Kiran Laghubitta Bittiya Sanstha Limited.

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