NMB Laghubitta Bounces Back to Profit of Rs. 2.75 Crores in Q3; EPS at Rs. 5.15

NMB Laghubitta Bittiya Sanstha (NMBMF) has made a strong comeback in the third quarter of fiscal year 2081/82 by posting a net profit of Rs. 2.75 crores, a significant turnaround from the loss of Rs. 7.49 crores reported in the same quarter of the previous fiscal year.

The microfinance company’s earnings per share (EPS) stood at Rs. 5.15, a notable shift from the negative Rs. 13.85 recorded in Q3 of 2080/81. Its net interest income surged by 58.88% to reach Rs. 27.86 crores.

NMB Laghubitta’s loans and advances to customers grew by 17.95%, rising to Rs. 6.26 Arba. The company’s borrowings also increased by 16.68% to Rs. 3.95 Arba, while customer deposits climbed by 9.31% to Rs. 1.45 Arba.

On the expenses side, personnel expenses rose by 12.17% to Rs. 19.83 crores. However, a major contributor to profit improvement was a sharp decline in impairment charges, which plummeted by over 90%, from Rs. 2.24 crores last year to just Rs. 21.04 lakhs this quarter.

NMB Laghubitta reported an operating profit of Rs. 2.74 crores, a complete reversal from the operating loss of Rs. 7.50 crores in the previous year. The institution also holds a distributable profit of Rs. 1.97 crores after necessary appropriations.

In terms of financial health, capital adequacy ratio declined to 13.96% from 15.84%, but non-performing loans (NPL) improved significantly, falling from 8.29% to 5.59%. Similarly, the cost of funds reduced by 23.59%, now standing at 7.45%.

The net worth per share rose slightly to Rs. 132.19, up 1.85% year-on-year. As of Q3 end, the company’s market price stood at Rs. 740.50, with a PE ratio of 143.75 times.

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* Figure is of the Immediate Fiscal Year Ending