Deprosc Laghubitta Reports 10.96% Decline in Net Profit Amid Surge in NPL Impacting Fiscal Performance in Q1
Thu, Nov 9, 2023 8:51 AM on Financial Analysis, Company Analysis, Latest,
Deprosc Laghubitta Bittiya Sanstha Limited (DDBL) has released its first-quarter financial report for the fiscal year 2080-81, unveiling a notable decline of 10.96% in net profit. The microfinance institution generated Rs. 8.87 crores during this period, contrasting with the Rs. 9.91 crores earned in the preceding fiscal year 2079-80.
The company's Net Interest Income experienced a marginal increase of 0.54%, reaching Rs. 33.42 Crores by the end of the fiscal year 2080-81.
However, this increase in Net Interest Income did not offset the decline in net profits. Consequently, the Earnings per Share (EPS) also witnessed a downturn, standing at Rs. 22.76, alongside a Net Worth per Share of Rs. 221.16 for the fiscal year 2080-81.
One of the concerning factors in this quarterly report is the sharp rise in the Non-performing Loan (NPL) ratio of the financial institution, which escalated from 3.68 percent to 5.14 percent in the fiscal year 2080-81. The impairment allocation of the company also surged significantly during this period, totaling Rs. 4.89 crores, further denting the profitability.
Despite these challenges, DDBL maintains Rs. 1.55 Arba in paid-up capital and a Reserve and Surplus of Rs. 1.2 Arba as of the first quarter of FY 2080-81.
Major Financial Highlights:
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Deprosc Laghubitta | ||
|---|---|---|---|
| Q1 2080/81 | Q1 2079/80 | Difference | |
| Paid Up Capital | 1,551,088.17 | 1,551,088.17* | 0.00% |
| Reserves & Surplus | 1,205,744.83 | 1,166,177.28* | 3.39% |
| Retained Earnings | 673,629.43 | 662,150.28* | 1.73% |
| Borrowings | 9,830,320.01 | 8,859,352.49* | 10.96% |
| Deposits from Customers | 9,041,270.87 | 9,045,565.10* | -0.05% |
| Loans and Advances to Customers | 21,266,775.91 | 20,230,515.47* | 5.12% |
| Net Interest Income | 334,242.84 | 332,464.07 | 0.54% |
| Personal Expenses | 173,403.47 | 168,746.15 | 2.76% |
| Impairment Charges | 48,969.84 | 39,552.80 | 23.81% |
| Operating Profit | 126,093.30 | 141,615.65 | -10.96% |
| Net Profit | 88,265.31 | 99,130.95 | -10.96% |
| Capital Adequacy (%) | 14.12 | 16.30 | -13.37% |
| NPL (%) | 5.14 | 3.68 | 39.67% |
| Distributable Profit (Rs) | 673,629.43 | - | - |
| Distributale Profit Per Share | 11.59 | - | - |
| Cost of Fund (%) | 9.90 | 9.25 | 7.03% |
| Annualized EPS (In Rs.) | 22.76 | 25.56 | -10.96% |
| Net Worth per Share (In Rs.) | 221.16 | 217.87 | 1.51% |
| Qtr end PE Ratio (times) | 31.19 | - | - |
| Qtr End Market Price | 710.00 | - | - |
