Declining Cost of Fund and Rising Core Business Revenue leads to outstanding 180.79% rise in net profit of Forward Microfinance; EPS stands at Rs 91.87 in Q4
Thu, Aug 5, 2021 4:37 AM on Financial Analysis, Latest,
Forward Microfinance Laghubitta Bittiya Sanstha Limited (FOWAD) published the fourth-quarter report of FY 2077/2078 with an outstanding 180.79% increment in Net Profit. As per the report published by the company, the net profit increased to Rs. 57.46 crores as compared to Rs. 32.72 crores in the corresponding quarter of the previous year.
The borrowings of the company increased by 45.13% to Rs. 8.63 Arba which was Rs. 5.95 Arba in the corresponding quarter of the previous year. At the same time, deposits increased by 18.67% to Rs 6.64 arba.
The company’s loans and advances have also increased by 34.20% to 15.56 Arba till this quarter.
The net interest income (core revenue) has increased by 69.46% to Rs. 1.27 arba compared to Rs. 75.18 crores in the corresponding quarter of the previous year.
The paid-up capital of the company stood at Rs. 62.55 crores till this quarter and its reserve and surplus stood at Rs. 1.26 Arba which is an increment of 56.57% in this quarter.
The cost of fund declined to 7.06% from 10.01 in the corresponding quarter and the Non-performing loans also declined to 3.67%.
Its earnings per share (EPS) stand at Rs. 91.87. The net worth per share is Rs. 302.52. The company traded at a P/E multiple of 30.15 times.
Major Highlights:
| Particulars (In Rs '000) | Forward Microfinance | ||
|---|---|---|---|
| Q4 2077/78 | Q4 2076/77 | Difference | |
| Paid Up Capital | 625,519.00 | 625,519.00 | 0.00% |
| Reserve & Surplus | 1,266,782.00 | 809,108.00 | 56.57% |
| Borrowings | 8,635,979.00 | 5,950,440.00 | 45.13% |
| Deposits | 6,648,790.00 | 5,602,722.00 | 18.67% |
| Loans & Advances | 15,569,515.00 | 11,601,611.00 | 34.20% |
| Net Interest Income | 1,274,104.00 | 751,869.00 | 69.46% |
| Staff Expenses | 335,726.00 | 312,337.00 | 7.49% |
| Provision for possible losses | 277,353.00 | 212,652.00 | - |
| Operating Profit | 902,999.00 | 322,300.00 | 180.17% |
| Write Back | 0.00 | 0.00 | - |
| Net Profit | 574,636.00 | 204,650.00 | 180.79% |
| Capital Adequacy (%) | 11.52 | 11.54 | -0.17% |
| NPL (%) | 3.67 | 4.67 | - |
| Cost of Fund (%) | 7.06 | 10.01 | -29.47% |
| EPS (In Rs.) | 91.87 | 32.72 | 180.79% |
| Net Worth per Share (In Rs.) | 302.52 | 229.35 | 31.90% |
| Qtr end PE Ratio (times) | 30.15 | - | - |
| Qtr End Market Price | 2770 | - | - |
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