Swabhimaan Laghubitta Reports Impressive Q4: Net Profit Soars Over 8-Fold to Rs. 7.23 Crores; EPS Rises to Rs. 47.15

Swabhimaan Laghubitta Bittiya Sanstha Limited (SMFBS) has posted an outstanding financial performance for the fourth quarter of fiscal year 2081/82, recording a massive growth of 819.04% in net profit, which surged to Rs. 7.23 crores compared to just Rs. 78.72 lakhs in the corresponding quarter of the previous fiscal year.

The Earnings Per Share (EPS) stood at Rs. 47.15, a significant rise from Rs. 5.39, reflecting a 775.28% increase. This growth is largely attributed to the 86.43% jump in net interest income, which reached Rs. 20.50 crores, and the reversal of impairment charges worth Rs. 1.10 crores, as opposed to a provisioning of Rs. 2.28 crores last year.

The company’s operating profit witnessed a staggering 1104.18% growth, reaching Rs. 10.94 crores, up from just Rs. 90.86 lakhs in the previous year. This performance was further supported by a 7.29% decrease in interest expenses, bringing it down to Rs. 19.55 crores.

In terms of financial health, capital adequacy improved to 8.88% from 8.30%, and the Non-Performing Loan (NPL) ratio significantly dropped to 4.20% from 7.35%, indicating better asset quality. Similarly, the cost of fund decreased sharply to 6.25% from 10.25%.

The company’s total loans and advances to customers reached Rs. 2.88 Arba, marking a 23.28% growth, while customer deposits rose by 27.28% to Rs. 88.44 crores. Borrowings also increased by 20.45% to Rs. 1.89 Arba.

Swabhiman’s net worth per share improved to Rs. 187.27, and the stock was trading at Rs. 1,824 at the end of Q4, reflecting a price-to-earnings (P/E) ratio of 38.68 times.

The company’s retained earnings climbed by 191.58% to Rs. 6.03 crores, while reserves and surplus stood at Rs. 7.35 crores, up by 51.45%.

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Major Financial Highlights:

* Figures are of the Immediate Previous Year Quarter Ending