Profitability supported by Lower cost of funds for Swadeshi Laghubitta; Company in merger process with NIC Asia Laghubitta
Wed, Nov 4, 2020 8:11 AM on Latest, Company Analysis,
Swadeshi Laghubitta Bittiya Sanstha Limited (SDESI) has published its first-quarter report of FY 2077/2078 with an increase in Net Profit by 74.13%. As per the report published by the company, the net profit increased to Rs. 3.33 crores as compared to Rs. 1.91 crores in the corresponding quarter of the previous year.
The company in a merger process with NIC Asia Laghibitta Bittiya Sanstha Limited. So, trading of stock is halted for the time being.
The borrowings of the company increased by 13.43% to Rs. 2.69 Arba which was Rs. 2.37 Arba in the corresponding quarter of the previous year. The company’s loans and advances increased by 11.42% to Rs. 4.13 Arba in this quarter.
The net interest income (core revenue) increased by 30.72% to Rs. 9.94 crores compared to Rs. 7.60 crores in the corresponding quarter of the previous year. Despite stagnant interest income, the company was able to minimize the cost of funds to 5.31% leading to higher retention of its revenue.
The paid-up capital of the company increased to Rs. 27.60 crores in this quarter and its reserve and surplus stood at Rs. 23 crores which is a decrease of 32.69%.
Its annualized earnings per share (EPS) stands at Rs. 48.40. The new wroth per share increased to Rs. 149.57. The company traded at a P/E multiple of 16.53 times.
Financial Highlights:
|
Particulars |
Swadeshi Laghubitta Bittiya Sanstha Limited |
||
|---|---|---|---|
|
Q1, 2077/2078 |
Q1, 2076/2077 |
Difference |
|
|
Paid-Up Capital |
276,000.00 |
230,000.00 |
20.00% |
|
Reserve & Surplus |
136,822.36 |
203,261.28 |
-32.69% |
|
Deposits |
1,187,362.93 |
1,108,268.39 |
7.14% |
|
Borrowings |
2,691,661.44 |
2,373,106.22 |
13.42% |
|
Loans and Advances |
4,131,316.46 |
3,707,733.11 |
11.42% |
|
Net Interest Income |
99,462.28 |
76,087.63 |
30.72% |
|
Provision for possible losses |
23,169.74 |
13,494.52 |
71.70% |
|
Operating Profit |
52,482.26 |
30,140.51 |
74.13% |
|
Net Profit |
33,397.80 |
19,180.32 |
74.13% |
|
Capital Adequacy Ratio (%) |
9.76% |
11.20% |
- |
|
NPL (%) |
2.99% |
1.70% |
- |
|
Cost of Fund (%) |
5.31% |
9.86% |
- |
|
Annualized EPS (In Rs.) |
48.40 |
33.36 |
45.10% |
|
Net Wroth per share (In Rs.) |
149.57 |
188.37 |
-20.60% |
|
Price to earnings (times) |
16.53 |
- |
- |
