First Microfinance Reports Stagnant Growth In FY 2076/77

July 19, 2020 | Investopaper

First Microfinance Laghubitta (FMDBL) has reported a rise in profit by a mere 5.43 percent in the fourth quarter of fiscal year 2076/77. The company made a profit of Rs. 13.97 crores. Last year, it had reported a net profit of Rs. 13.32 crores until the fourth quarter.

To view the quarterly report, CLICK HERE.

The paid-up capital of the company stands at Rs. 80.07 crores. The reserve has grown to Rs. 24.79 crores, a 129 percent rise in a year. Likewise, the microfinance has borrowed Rs. 5.24 Arba and provided loans of Rs. 5.54 Arba until the end of Ashad 2076/77. Borrowings and loans have grown by only 1.95 percent and 0.54 percent respectively.

In the fiscal year 2076/77, First Microfinance has earned net interest income of Rs. 22.42 crores, which is only 5.66 percent higher than the previous year. Likewise, the operating profit of the company grew by 3.86 percent to Rs 21.80 crores.

The Non-Performing Loans (NPL) is at zero percent. The cost of fund has fell to 10.07 percent.

Earnings Per Share (EPS) of First Microfinance stands at Rs. 17.45 percent. Also, the net-worth per share is Rs. 130.96. At the market price of Rs. 555 (of Ashad end, 2077), the P/E ratio stands at 31.81. This indicates that the stock of FMDBL is relatively over-priced.

The unaudited fourth quarter report of the fiscal year 2076/77 is also summarized in the table below:

First Microfinance (FMDBL) Unaudited Fourth Quarter Summary, FY 2076/77

Headings 4th Qtr, F.Y. 2076/77 4th Qtr, F.Y. 2075/76 Percent Change
Paid up capital(Rs.’crores’) 80.07 80.07 0.00
Reserve and Surplus(Rs.’ crores’) 24.79 10.82 129.11
Borrowings (Rs.’Arba’) 5.24 5.14 1.95
Loans & Advances(Rs.’Arba’) 5.54 5.51 0.54
Net Interest Income(Rs.’crores’) 22.42 21.22 5.66
Operating Profit (Rs. “crores’) 21.8 20.99 3.86
Net Profit(Rs.’crores’) 13.97 13.25 5.43
Non Performing Loans, NPL(%) 0 0
Cost of Funds (%) 10.07 10.29 -2.14
Earnings Per Share, EPS(Rs.) 17.45
Networth Per Share ( Rs.) 130.96
Market Price Per Share (Rs.) [Ashad end, 2077] 555
P/E Ratio 31.81

Note:

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.

To see the reports of other companies, CLICK HERE.

About First Microfinance Laghubitta Bittiya Sanstha Limited (FMDBL)

First Microfinance Laghubitta started its operation from January 8, 2010 (Poush 24, 2066 BS) in Kathmandu as national level microfinance.   It was licensed by Nepal Rastra Bank under the Bank and Financial Institution Act, 2073. First Microfinance provides microfinance services to the economically and socially disadvantaged and deprived people through MFIs.

First microfinance is promoted by Global IME Bank Limited, Prabhu Bank Limited, Deva Bikas Bank Limited, ICFC Finance Limited, renowned bankers, Chartered accountants and professionals.

Promoters hold 51 percent ownership in the company while the general public possess 49 percent shares.

 

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