High provisions of Rs 5.28 crore leads to decreased in net profit by 62.21% of NADEP Laghubitta; NPL escalated in Q3

Sun, May 19, 2019 6:54 AM on Financial Analysis, Latest, Stock Market,
High provi...

Nadep Laghubitta Bittiya Sanstha Limited (NADEP) net profit decline by 62.21% in the third quarter of the current fiscal year 2075/76.

As per the third quarter report published today, the microfinance company’s net profit and operating profit have decreased by 62.21% and 65.66% to Rs 1.68 crore from Rs 4.46 crores and Rs 2.29 crores from 6.68 crore respectively in the corresponding quarter of the previous FY 2074/75.

The net profit decline due to mass provision for possible losses of Rs 5.28 crore and its NPL rises to 4.38% till Q3.

The company collected Rs 1.05 arba from deposits and has borrowings of Rs 2.16 arba while it was able to float Rs 3.69 arba as loans and advances during the third quarter.

The paid-up capital of the company stands at Rs 32 crore with Rs 22.48 crore as a reserve.

The annualized EPS stands at Rs 7.03 with Net worth per share as Rs 170.25. The PE ratio of the microfinance company is massive 92.75 times.

NADEP Laghubitta has proposed 15% bonus shares for FY 2075/76 and bonus shares yet to be adjusted in financials.

NADEP Laghubitta to convene its AGM on Baisakh 26; bonus agenda to be endorsed

Major Highlights:

Particulars (In Rs '000)

Nadep Laghubitta

Q3 2075/76

Q3 2074/75

Difference

Paid Up Capital

320,000.00

112,000.00

185.71%

Reserve & Surplus

224,809.03

155,678.30

44.41%

Deposits

1,056,408.47

783,538.34

34.83%

Borrowings

2,165,075.48

1,631,995.16

32.66%

Loans & Advances

3,696,797.51

2,758,256.67

34.03%

Net Interest Income

187,901.32

165,328.52

13.65%

Staff Expenses

131,868.30

95,527.24

38.04%

Provision for possible losses

52,855.76

7,102.99

-

Operating Profit

22,958.71

66,865.58

-65.66%

Net Profit

16,861.29

44,615.86

-62.21%

Capital Adequacy (%)

13.41

9.65

38.96%

NPL (%)

4.38

2.20

99.09%

Cost of Fund (%)

9.20

8.60

6.98%

Annualized EPS (In Rs.)

7.03

53.11

-86.77%

Net Worth per Share (In Rs.)

170.25

239.00

-28.76%

Qtr End PE Ratio (times)

92.75

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