RSDC Laghubitta’s Net Profit Declines by 27.19% in Q4; Operating Profit Contracts Over 40%
Fri, Aug 1, 2025 8:33 AM on Financial Analysis, Company Analysis, Latest,
RSDC Laghubitta Bittiya Sanstha Limited (RSDC) has published its unaudited financial report for the fourth quarter of the fiscal year 2081/82, revealing a decline in profitability compared to the corresponding period of the previous fiscal year.
The microfinance institution posted a net profit of Rs. 10.31 crore, marking a 27.19% drop from the Rs. 14.17 crore earned in Q4 of FY 2080/81. Similarly, operating profit declined sharply by 40.39%, falling from Rs. 25.14 crore to Rs. 14.99 crore.
Despite the decline in profit, the company maintained a growth in its core financial base. Its paid-up capital increased by 9.50% to reach Rs. 1.03 arba, up from Rs. 94.43 crore in the previous year. Likewise, reserves rose by 11.19% to Rs. 18.29 crore.
However, RSDC Laghubitta experienced a notable drop in net interest income, which fell by 22.52% to Rs. 22.45 crore. Personnel expenses were reduced by 18.59%, amounting to Rs. 3.78 crore during the review period.
A significant rise was recorded in borrowings, which surged by 27.05% to Rs. 68.09 crore. Meanwhile, loans and advances to customers remained relatively stable, with a marginal decline of 0.98% to Rs. 62.44 crore.
The institution’s impairment charges for loans and advances stood at Rs. 2.68 crore in Q4, compared to a reversal of Rs. 65.66 lakh in the previous year.
Key financial indicators also showed signs of strain:
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Annualized Earnings Per Share (EPS) dropped to Rs. 9.98 from Rs. 15.01, a decline of 33.51%.
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Net worth per share stood at Rs. 125.95, slightly lower than last year’s Rs. 127.73.
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Capital adequacy ratio was maintained at 18.45%, a minimal drop from 18.49%.
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Non-performing loan (NPL) ratio rose marginally to 3.34% from 3.31%.
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Cost of fund significantly improved, falling by 43.24% to 6.17%.
As of the end of the quarter, the company’s price-to-earnings (PE) ratio stood at 70.26 times, with a quarter-end market price of Rs. 701.19 per share.
Major Financial Highlights:
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | RSDC Laghubitta | ||
|---|---|---|---|
| Q4 2081/82 | Q4 2080/81 | Difference | |
| Paid Up Capital | 1,034,064.42 | 944,351.07* | 9.50% |
| Share Premium | 0.00 | 0.00 | - |
| Retained Earnings | 85,431.67 | 97,328.89* | -12.22% |
| Reserves | 182,942.35 | 164,530.17* | 11.19% |
| Loans & Advances to Customers | 6,244,362.75 | 6,306,102.10* | -0.98% |
| Borrowings | 6,809,057.81 | 5,359,331.02* | 27.05% |
| Net Interest Income | 224,557.92 | 289,844.33* | -22.52% |
| Personnel Expenses | 37,886.26 | 46,535.88 | -18.59% |
| Impairment Charges/Reversal for loans and Advances | 26,821.74 | -6,566.20 | - |
| Operating Profit | 149,899.04 | 251,456.25 | -40.39% |
| Net Profit | 103,196.04 | 141,742.63 | -27.19% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 85,431.66 | 0.00 | - |
| Capital Adequacy (%) | 18.45 | 18.49 | -0.22% |
| NPL (%) | 3.34 | 3.31 | 0.91% |
| Cost of Fund (%) | 6.17 | 10.87 | -43.24% |
| Annualized EPS (In Rs.) | 9.98 | 15.01 | -33.51% |
| Net Worth per Share (In Rs.) | 125.95 | 127.73 | -1.39% |
| Qtr end PE Ratio (times) | 70.26 | - | - |
| Qtr End Market Price | 701.19 | - | - |
