Lower retention of revenue due to higher provision for Forward Microfinance; net profit rises by just 6.74%
Fri, Nov 13, 2020 8:05 AM on Latest, Company Analysis,
Forward Microfinance Laghubitta Bittiya Sanstha (FOWAD) has published its first-quarter report of FY 2077/2078 with an increase in Net Profit by 6.74%. As per the report published by the company, the net profit increased to Rs. 8.94 crores as compared to Rs. 8.37 crores in the corresponding quarter of the previous year.
The borrowings of the company decreased by 32.65% to Rs. 6.98 Arba which was Rs. 5.26 Arba in the corresponding quarter of the previous year. The company’s loans and advances increased by 26.02% to Rs. 12.74 Arba in this quarter.
The net interest income (core revenue) increased by 30.78% to Rs. 29.01 crores compared to Rs. 22.18 crores in the corresponding quarter of the previous year. Despite an increase in core business revenue, the profit margin for the company squeezed because of the higher provision in the quarter.
The paid-up capital of the company stood at Rs. 50.04 crores in this quarter and its reserve and surplus stood at Rs. 1.01 Arba.
Its annualized earnings per share (EPS) stands at Rs. 71.48. The net worth per share stood at Rs. 302.57. The company traded at a P/B multiple of 5.08 times.
Financial Highlights:
|
Particulars |
Forward Microfinance Laghubitta Bittiya Sanstha Limited |
||
|---|---|---|---|
|
Q1, 2077/2078 |
Q1, 2076/2077 |
Difference |
|
|
Paid-Up Capital |
500,415.00 |
377,672.00 |
32.50% |
|
Reserve & Surplus |
1,013,701.00 |
954,544.00 |
6.20% |
|
Borrowings |
6,985,743.00 |
5,266,279.00 |
32.65% |
|
Deposits |
5,897,681.00 |
4,870,364.00 |
21.09% |
|
Loans and Advances |
12,749,291.00 |
10,116,592.00 |
26.02% |
|
Net Interest Income |
290,124.00 |
221,845.00 |
30.78% |
|
Provision for possible losses |
123,330.00 |
18,466.00 |
- |
|
Operating Profit |
140,528.00 |
131,559.00 |
- |
|
Net Profit |
89,427.00 |
83,781.00 |
6.74% |
|
Capital Adequacy Ratio (%) |
11.40% |
13.10% |
- |
|
NPL (%) |
2.71% |
0.82% |
- |
|
Cost of Fund (%) |
8.52% |
11.05% |
- |
|
Annualized EPS (In Rs.) |
71.48 |
88.73 |
-19.44% |
|
Net Worth per share (In Rs.) |
302.57 |
352.74 |
-14.22% |
|
P/B Ratio |
5.08 |
- |
- |
