Mahuli Laghubitta Delivers Exceptional Q4, Net Profit Skyrockets 1,036% to Rs. 19.32 Crore

Mahuli Laghubitta Bittiya Sanstha Limited (MSLB) has delivered an exceptional financial performance in the fourth quarter of FY 2082/83, reporting a remarkable 1036.40% surge in net profit to Rs. 19.32 crore, compared to Rs. 1.70 crore in the corresponding quarter of the previous fiscal year.

The impressive earnings growth was primarily supported by a significant increase in core banking income and a sharp reduction in impairment charges. Net interest income climbed 39.74% year-on-year to Rs. 49.74 crore, while impairment charges plunged 93.85%, reflecting improved asset quality. As a result, the company's operating profit soared from Rs. 2.23 crore to Rs. 27.61 crore during the review period.

The microfinance institution also strengthened its financial position, with retained earnings rising 245.84% to Rs. 16.50 crore, while reserves increased 17.89% to Rs. 33.06 crore. Loans and advances expanded 20.66% to Rs. 617.39 crore, supported by a 13.11% increase in customer deposits. Meanwhile, borrowings grew 17.98% year-on-year to Rs. 343.34 crore.

Key financial indicators also improved during the quarter. The capital adequacy ratio increased to 10.61% from 9.38%, while the cost of funds declined to 6.32% from 7.51%. The non-performing loan (NPL) ratio also improved, falling to 9.80% from 12.16% a year earlier.

The company's Earnings Per Share (EPS) stood at Rs. 49.88, while Net Worth Per Share reached Rs. 227.91. At the close of the quarter, MSLB shares were trading at Rs. 1,230, representing a P/E ratio of 24.66 times.

Report:

Major Financial Highlights:

Particulars (In Rs '000) Mahuli Laghubitta
Q4 2082/83 Q4 2081/82 Difference
Paid Up Capital 387,494.87 369,923.50 4.75%
Retained Earnings 165,010.85 47,712.38 245.84%
Reserves 330,625.64 280,442.58 17.89%
Borrowings 3,433,405.55 2,910,111.16 17.98%
Deposits from Customers 2,070,170.35 1,830,212.90 13.11%
Loans and Advances to Customers 6,173,982.82 5,116,991.11 20.66%
Net Interest Income 497,435.44 355,963.56 39.74%
Personnel Expenses 201,443.17 177,902.14 13.23%
Impairment Charges 8,079.44 131,360.66 -93.85%
Operating Profit 276,111.73 22,357.15 1135.00%
Net Profit 193,278.21 17,007.96 1036.40%
Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments  165,010.85 47,712.38 245.84%
Capital Adequacy (%) 10.61 9.38 13.11%
NPL (%) 9.80 12.16  
Cost of Fund (%) 6.32 7.51 -15.85%
EPS (In Rs.) 49.88 4.60 984.87%
Net Worth per Share (In Rs.) 227.91 188.71 20.77%
Qtr end PE Ratio (times) 24.66 - -
Qtr End Market Price 1230.00 - -