Rise in Interest Expenses Affects Business Volume of Forward Microfinance in Q1; Net Profit Declines by 63.81%
Thu, Nov 17, 2022 12:35 PM on Latest, Financial Analysis, Stock Market,
Forward Microfinance Laghubitta Bittiya Sanstha Limited (FOWAD) published the first-quarter report of FY 2079/2080 with decline of 63.81% in Net Profit. As per the report published by the company, the net profit decreased to Rs. 3.03 crore as compared to Rs. 8.39 crore in the corresponding quarter of the previous year.
The borrowings of the company decreased by 3.87% to Rs. 10.06 Arba which was Rs. 10.47 Arba in the corresponding quarter of the previous year. The deposits of the company increased by 17.24% to Rs 8.21 arba. The company’s loans and advances have also increased by 11.98% to 19.87 Arba in this quarter.
The net interest income (core revenue) has decreased by 24.20% to Rs. 20.66 Crores compared to Rs. 27.25 Crores in the corresponding quarter of the previous year. The interest expenses has increased by 47.44% which has affected the core revenue of the company for this quarter.
Likewise, the increase in provision for possible losses by 45.18% has also affected the profitability of company. The company had write back of provisions of Rs. 9.67 Crores.
The paid-up capital of the company stood at Rs. 84.44 crores in this quarter and its reserve and surplus stood at Rs. 1.89 arba which is an increase of 40.35% in this quarter.
The company NPL declined to 0.03% from 3.72%.
Its annualized earnings per share (EPS) stand at Rs. 14.39. The net worth per share is Rs. 324.07. The company traded at a P/E multiple of 178.38 times.
Major Highlights:
| Particulars (In Rs '000) | Forward Microfinance Laghubitta | ||
| Q1 2079/80 | Q1 2078/79 | Difference | |
| Paid Up Capital | 844,451.00 | 625,519.00 | 35.00% |
| Reserve & Surplus | 1,892,155.00 | 1,348,202.00 | 40.35% |
| Borrowings | 10,066,357.00 | 10,471,209.00 | -3.87% |
| Deposits | 8,213,557.00 | 7,005,808.00 | 17.24% |
| Loans & Advances | 19,877,619.00 | 17,750,313.00 | 11.98% |
| Interest Expenses | 507,633.00 | 344,298.00 | 47.44% |
| Net Interest Income | 206,632.00 | 272,598.00 | -24.20% |
| Staff Expenses | 125,173.00 | 112,355.00 | 11.41% |
| Provision for possible losses | 182,374.00 | 125,616.00 | 45.18% |
| Operating Profit | (48,560.00) | 131,880.00 | |
| Write Back | 96,777.00 | ||
| Net Profit | 30,376.00 | 83,924.00 | -63.81% |
| Capital Adequacy (%) | 0.14 | 10.56 | -98.71% |
| NPL (%) | 0.03 | 3.72 | -99.30% |
| Cost of Fund (%) | 0.11 | 9.07 | -98.75% |
| Annualized EPS (In Rs.) | 14.39 | 53.67 | -73.19% |
| Net Worth per Share (In Rs.) | 324.07 | 315.53 | 2.71% |
| Qtr End P/E Ratio | 178.48 | - | - |
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