Decline in Core Revenue and Rising Impairment Charges Leads to Decline in RSDC Laghubitta Q2 Profit by 36.25%
Sun, Jan 19, 2025 8:46 AM on Financial Analysis, Latest,
RSDC Laghubitta Bittiya Sanstha Limited (RSDC), a wholesaler microfinance company has reported a decrease in net profit by 36.25% compared to the same quarter of the previous year and stood at Rs. 4.41 Crores in the second quarter of FY 2081/2082.
In the second quarter, the company had Rs 3.67 crores as distributable profit after PL Appropriation and Regulatory Adjustments.
On the other hand, the borrowings of the company increased by 14.33% to Rs. 6.12 Arba which was Rs. 5.35 Arba in the corresponding quarter of the previous year. The company’s loans and advances to MFIs and co-operatives also increased by 3.12% to Rs. 6.50 Arba in this quarter.
Likewise, the net interest income (core revenue) declined by 8.11% to Rs. 11.21 crores compared to Rs. 12.20 crores in the corresponding quarter of the previous year.
The company’s annualized EPS stands at Rs. 9.36 and Non-performing loan (NPL) increased to 2.71% in Q2. Likewise, the company’s Capital Adequacy ratio (CAR) stood at 18.02%.
Major Highlights:
* Immediate Previous Year Ending Figure
| Particulars (In Rs '000") | RSDC Laghubitta | ||
| Q2 2081/82 | Q2 2080/81 | Difference | |
| Share Capital | 9,44,351 | 9,44,351* | 0.00% |
| Share Premium | 0 | 0 | |
| Retained Earnings | 1,31,144 | 97,329* | 34.74% |
| Reserves | 1,73,771 | 1,64,530* | 5.62% |
| Borrowings | 61,27,391 | 53,59,331* | 14.33% |
| Deposits from Customers | - | - | - |
| Loans & Advances to MFIs and Cooperatives | 65,02,697 | 63,06,102* | 3.12% |
| Net Interest Income | 1,12,117 | 1,22,012 | -8.11% |
| Impairment Charge/(Reversal) | 26,088 | 4,175 | 524.89% |
| Personnel Expenses | 17,633 | 21,211 | -16.87% |
| Operating Profit | 64,670 | 99,006 | -34.68% |
| Profit/(Loss) for the Year | 44,182 | 69,304 | -36.25% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 36,709 | ||
| Capital Adequacy Ratio (CAR) | 18.02 | 15.44 | 16.71% |
| NPL | 2.71 | 1.82 | |
| CD and Borrowing Ratio | 106.13 | 110.49 | -3.95% |
| Cost of Fund (%) | 7 | 11.08 | -36.82% |
| Interest Rate Spread (%) | 2.18 | 1.78 | 22.47% |
| Annualized EPS (In Rs.) | 9.36 | 14.68 | -36.25% |
| Net Worth per Share (In Rs.) | 132.29 | 127.73 | 3.57% |
| Qtr End PE Ratio (times) | 71.61 | - | - |
| Qtr End Market Price | 670.1 | - | - |
