First Microfinance Laghubitta Reports Rise in Net Profit by 34.64% in Q2, Both Borrowings and Loans Decline

Sun, Jan 25, 2026 12:18 PM on Financial Analysis, Company Analysis, Latest,

First Microfinance Laghubitta Bittiya Sanstha (FMDBL) has published its second-quarter report of FY 2082/83 with a rise in Net Profit by 34.64%. As per the report, the net profit increased to Rs. 7.04 crore as compared to Rs. 5.23 crore in the corresponding quarter of the previous year.

The company’s paid-up capital stood at Rs. 1.34 arba, while reserves and surplus stood at Rs. 32.6 crores, up 6.06% compared to previous fiscal year. However, retained earnings declined by 39.39%, amounting to Rs. 5.47 crores compared to 9.03 crores in previous year.

During this period, the company reduced its borrowings by 17%, which now stands at Rs. 4.07 arba, compared to Rs. 4.90 arba in the previous year. Similarly, loans and advances to MFIs decreased by 22.79% to Rs. 4.67 arba.  Also, net interest income dropped by 12.54% and totaled Rs. 9.74 crores. The company recorded a reversal of Rs. 3.47 crore compared to a impairment charges of Rs. 85.13 lakhs in the same period last year.

The company’s Capital Adequacy Ratio (CAR) improved to 32%, up from 25.21%. However, its Non-Performing Loan (NPL) ratio inched up to 4.52%, from 4.44% in the previous fiscal year. The cost of funds also improved significantly, declining by 24.65% to 5.38%.

The company’s Annualized Earnings Per Share (EPS) for the period stood at Rs. 10.47. The net worth per share remained steady at Rs. 128.31. The company’s Price-to-Earnings (P/E) ratio at the end of the quarter was 76.50 times, based on a market price of Rs. 801.1 per share.

Report

   Major Highlights:  

* Figures are of Immediate Previous Year Quarter Ending

Particulars (In Rs '000) First Microfinance Laghubitta Bittiya Sanstha Limited
Q2 2082/83 Q2 2081/82 Difference
Paid Up Capital 1,344,871.32 1,344,871.32* -
Share Premium - - -
Retained Earnings 54,756.98 90,340.02* -39.39%
Reserves 326,003.87 307,385.49* 6.06%
Borrowings 4,075,097.40 4,909,681.17* -17.00%
Loans and Advances to MFIs 4,675,641.38 6,055,997.24* -22.79%
Net Interest Income 97,454.97 111,432.91 -12.54%
Personal Expenses 25,504.05 22,544.03 13.13%
Impairment Charges/(Reversal) for loans and advances -34,726.10 8,513.47 -
Operating Profit 100,594.71 74,715.47 34.64%
Net Profit 70,416.30 52,300.83 34.64%
Distributable Profit/(loss) after P/L Appropriation and Regulatory Adjustments 47,511.97 39,455.52 20.42%
Capital Adequancy(%) 32.00 25.21 26.93%
Non-Performing Loan 4.52 4.44 1.80%
Cost of Fund 5.38 7.14 -24.65%
Annualized EPS (In Rs.) 10.47 7.78 34.64%
Net Worth per Share (In Rs.) 128.31 129.57 -0.97%
Qtr end PE Ratio (times) 76.50 - -
Qtr End Market Price 801.1 - -