May 7,2020 | Investopaper
Two microfinance in the merger process, namely Aarambha Laghubitta and Chautari Laghubitta have published the un-audited third quarter report of the fiscal year 2076/77. These two microfinance are merging in the swap ratio of 1:1. Here, we will try to compare the performance of these microfinance on the basis of the un-audited third quarter report of 2076/77.
The financial comparison of these two microfinance will be based on the following indicators.
Paid-up capital & Reserve
Chautari Laghubitta has a higher capital of Rs. 15.90 crores while Aarambha Laghubitta has a paid-up capital of Rs. 6.44 crores. Likewise, Chautari has a total reserve of Rs. 5.67 crores and Aarambha has reserve of Rs. 1.85 crores.
Borrowings, Deposits, and Loans
Chautari leads in borrowings, deposits and loans with Rs 94.20 crores, Rs 63.75 crores and Rs 174.53 crores respectively. On the other hand, Aarambha Laghubitta has Rs 43.13 crores, Rs 19.43 crores and Rs 65.78 crores in borrowings, deposits and loans respectively.
Net Interest Income, Operating Profit and Net Profit
With the net interest income of Rs 9.27 crores, Chautari Laghubitta has earned Rs 4.22 crores and Rs. 2.69 crores in operating profit and net profit respectively. Aarambha Laghubitta posted an operating profit of Rs. 1.63 crores and net profit of Rs. 1.04 crores.
Non-Performing Loan (NPL) and Cost of fund
Aarambha Laghubitta has a lower NPL of 1.15 percent while Chautari has a lower cost of fund of 9.82 percent.
Earnings Per Share (EPS) and Net-worth Per Share
Aarambha Laghubitta has an EPS of Rs. 21.52 and net-worth per share of Rs. 128.67. Likewise, Chautari Laghubitta has EPS and net-worth per share of Rs. 18 and Rs. 128.74 respectively.
The comparative performance is also summarized in the table below:
Comparative Performance: Aarmabha Laghubitta and Chautari Laghubitta
|Paid up capital(Rs.’crores’)||15.9||6.44|
|Reserve and Surplus(Rs.’ crores’)||5.67||1.85|
|Loans & Advances(Rs.’ crores’)||174.53||65.78|
|Net Interest Income(Rs.’crores’)||9.27||3.1|
|Operating Profit (Rs. “crores’)||4.22||1.63|
|Non Performing Loans, NPL(%)||2.53||1.15|
|Cost of Funds (%)||9.82||10.8|
|Earnings Per Share, EPS(Rs.)||18||21.52|
|Net-worth Per Share ( Rs.)||128.74||128.67|
The above figures are based on the un-audited quarterly report published by the respective company. Investors are advised to take other things into consideration along with this report while making investment decisions. The numbers may vary after the final audit.