Rapid growth in loans pushed the profit of Civil Laghubitta by 45 percent

Civil Laghubitta has reported a growth in profit by 45 percent in the fourth quarter of fiscal year 2075/76. The microfinance earned a profit of Rs. 1.64 crores, up from Rs. 1.13 crores of the previous year. Due to the increase in net interest income by 39 percent, the profit of the microfinance rose. The net interest income stood at Rs. 6.46 crores until the fourth quarter of 2075/76. Last year, the net interest income stood at Rs. 4.64 crores in the same quarter.

The paid-up capital of Civil Laghubitta until the fourth quarter stands at Rs. 11.41 crores. Similarly, the reserve is at Rs. 2.13 crores. This is a growth of 274 percent from the previous year. Last fiscal year, the reserves stood at Rs. 57 lakhs.

Loans and Advances

The major improvement of the microfinance is seen in the lending. Until the fourth quarter of 2075/76, Civil Laghubitta has floated loans of Rs. 102.15 crores. This is almost 78 percent higher than the corresponding quarter of the previous year. The total loans stood at Rs. 57.53 crores in the previous year. Similarly, borrowing and deposits have grown by 79 percent and 62 percent. The total borrowings and loans until the fourth quarter of 2075/76 stood at Rs. 61.48 crores and Rs. 27.11 crores.

However, the Non-performing loans (NPL) and base rate have surged in this fiscal year. The NPL and base rate are at 1.34 percent and 10.93 percent respectively.

The earning per share (EPS) is Rs. 14.36. Likewise, the net-worth per share is Rs. 118.63. At the end of the fourth quarter of 2075/76, the share of Civil Laghubitta is trading at Rs. 555. This gives the stock a p/e ratio of 38.65. It indicates that the stock is relatively overvalued on the basis of its earnings.

The fourth-quarter report of Civil Laghubitta is summarized in the table below:

Civil Laghubitta Fourth Quarter, F.Y. 2075/76

PAID-UP CAPITAL (Rs. In crores) 11.41 11.41 0.00
RESERVE (Rs. In crores) 2.13 0.57 273.68
BORROWINGS (Rs. In crores) 61.48 34.4 78.72
DEPOSITS (Rs. In crores) 27.11 16.69 62.43
LOANS  (Rs. In crores) 102.15 57.53 77.56
NET INTEREST INCOME (Rs. In crores) 6.46 4.64 39.22
PROFIT (Rs. In crores) 1.64 1.13 45.13
NON PERFORMING LOANS, NPL (%) 1.34 0.78 71.79
COST OF FUND (%) 10.93 6.45 69.46
MARKET PRICE PER SHARE (Rs.) [Ashad 31] 555
P/E RATIO (based on the price of Ashad 31, 2076) 38.65


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