Higher Impairment Charges and NPL Led To Decline in Net Profit by 52.80% for Mahila Laghubitta (MLBSL) in Q3 of FY 2079/80; EPS Slumps to Rs. 32.17
Mon, May 15, 2023 11:49 AM on Latest,
Mahila Laghubitta Bittiya Sanstha Limited (MLBSL) has published its third quarter report for the fiscal year 2079/2080 recording a Net Profit of Rs. 5.24 crores compared to Rs. 11.11 crores in the corresponding quarter of the previous fiscal year, which is a decline of 52.80 %.
The impairment charges of the microfinance company have increased massively by 604.13% to amount to Rs. 3.26 crores until Q3 of the current fiscal year. Similarly, the Non-Performing Loan (NPL) of the company has increased sharply to reach 9.80% in the third quarter of FY 2079/80. Therefore, we can assume that higher impairment charges and NPL has negatively affected the profitability of the company.
On the other hand, the net interest income (core revenue) of the company has decreased slightly by 3.57 % and sums up to Rs. 20.58 crores until Q3 of FY 2079/80. Meanwhile, the personnel/staff expenses of the company have increased to Rs. 12.59 crores, which is an increment of 22.52% compared to the third quarter of FY 2078/79.
MLBSL has managed to increase its paid-up capital by 47.50% which amounts to Rs. 21.75 crores. The company has a reserve and surplus (reserve+ retained earnings) of Rs. 22.46 crores.
The company maintains an Earning per Share (EPS) of Rs. 32.17, while the Net worth per Share of the company stands at Rs. 203.24.
Major Financial Highlights:
| Particulars (In Rs '000) | Mahila Laghubitta | ||
|---|---|---|---|
| Q3 2079/80 | Q3 2078/79 | Difference | |
| Paid Up Capital | 217,562.50 | 147,500.00 | 47.50% |
| Retained Earnings | 50,579.47 | 98,719.85 | -48.76% |
| Reserves | 174,031.64 | 147,701.27 | 17.83% |
| Deposits | 1,438,887.98 | 1,340,019.57 | 7.38% |
| Borrowings | 2,452,510.37 | 2,642,106.20 | -7.18% |
| Loans & Advances to MFIs & Cooperatives | 4,307,431.18 | 4,395,239.48 | -2.00% |
| Net Interest Income | 205,869.23 | 213,491.68 | -3.57% |
| Staff Expenses | 125,951.18 | 102,800.88 | 22.52% |
| Impairment Charges/Reversal for loans and Advances | 32,686.33 | 4,642.07 | 604.13% |
| Operating Profit | 74,983.29 | 158,850.38 | -52.80% |
| Net Profit | 52,488.30 | 111,195.27 | -52.80% |
| Capital Fund to RWA (%) | 9.39 | 9.11 | 3.07% |
| NPL (%) | 9.80 | 2.97 | 229.97% |
| Cost of Fund (%) | 10.44 | 11.53 | -9.45% |
| EPS (In Rs.) | 32.17 | 150.77 | -78.66% |
| Net Worth per Share (In Rs.) | 203.24 | 166.93 | 21.75% |
| Qtr end PE Ratio (times) | 61.24 | - | - |
| Qtr End Market Price | 1970 | - | - |
