First Microfinance Reports Rs. 19.08 Crores Net Profit in Q4; Borrowings Drop Over Rs. 2 Arba While EPS Falls to Rs. 14.19

First Microfinance Laghubitta Bittiya Sanstha Limited (FMDBL) has reported a net profit of Rs. 19.08 crores in the fourth quarter of fiscal year 2081/82, reflecting an 11% decline from the Rs. 21.44 crores posted in the corresponding period of the previous fiscal year.

The company’s paid-up capital grew by 9%, reaching Rs. 1.34 arba, while reserves and surplus stood at Rs. 31.24 crores, up 9.46% year-on-year. However, retained earnings declined by 10.09%, amounting to Rs. 10.78 crores.

During this period, the company significantly reduced its borrowings by 29.55%, which now stands at Rs. 4.90 arba, compared to Rs. 6.97 arba in the previous year. Similarly, loans and advances to customers decreased by 17.78% to Rs. 6.09 arba.

In terms of profitability, net interest income dropped by 31.81% and totaled Rs. 21.17 crores. Meanwhile, interest expenses fell by 39.14% to Rs. 33.87 crores. The company recorded an impairment reversal of Rs. 4.58 crores, compared to a provision of Rs. 4.87 crores in the same quarter last year, positively contributing to overall profit.

Despite a decline in overall earnings, the company’s Capital Adequacy Ratio (CAR) improved to 26.85%, up from 20.92%. However, its Non-Performing Loan (NPL) ratio inched up to 3.64%, from 3.16% in the previous fiscal year. The cost of funds also improved significantly, declining by 27.59% to 6.22%.

The company’s Earnings Per Share (EPS) for the period stood at Rs. 14.19, a decline from Rs. 17.38 recorded in Q4 2080/81. The net worth per share remained steady at Rs. 131.25. The company’s Price-to-Earnings (P/E) ratio at the end of the quarter was 56.31 times, based on a market price of Rs. 799.08 per share.

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* Figures are of the Immediate Previous Year Quarter Ending