Mahuli Laghubitta Logs 25.63% Rise in Net Profit in Q3; EPS Stands at Rs. 14.62

Mahuli Laghubitta Bittiya Sanstha Limited (MSLB) has posted a net profit of Rs. 4.05 crores in the third quarter of fiscal year 2081/82, marking a 25.63% increase compared to Rs. 3.22 crores in the corresponding quarter of the previous fiscal year.

The company's earnings per share (EPS) rose to Rs. 14.62, up from Rs. 13.35 in the same period last year. It earned Rs. 25.82 crores as net interest income, which is 33.13% higher than the Rs. 19.40 crores posted in Q3 of 2080/81. A key contributor to this improvement was the significant reduction in cost of funds to 7.33%, from 9.13% last year.

Paid-up capital increased by 14.75%, reaching Rs. 36.99 crores, while retained earnings surged by 71.37% to Rs. 4.53 crores. The microfinance institution has maintained a reserve fund of Rs. 30.42 crores, up by 6.44%.

On the lending front, loans and advances to customers reached Rs. 4.92 Arba, reflecting a 7.40% growth from Rs. 4.58 Arba last year. Likewise, borrowings stood at Rs. 2.85 Arba, an increase of 17.81%, while deposits reached Rs. 1.75 Arba, growing by 6.79%.

However, some concerns persist. Impairment charges rose sharply by 77% to Rs. 6.04 crores, suggesting a deterioration in asset quality. The Non-Performing Loan (NPL) ratio inched up slightly to 4.96% from 4.90%. Meanwhile, the Capital Adequacy Ratio fell to 9.81%, a drop of 16.01% from 11.68% in the previous year, indicating the need for stronger capital buffers.

Net worth per share decreased marginally to Rs. 194.51 from Rs. 196.88. As of the end of Q3, Mahuli Laghubitta’s market price stood at Rs. 1,240.58 per share, translating to a price-to-earnings (PE) ratio of 84.86 times.

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* Figure is of the Immediate Fiscal Year Ending