January 18, 2023 | Investopaper
First Microfinance Laghubitta Bittiya Sanstha Limited (FMDBL) has reported a surge in profit of almost 38 percent until the second quarter of the current fiscal year 2079/80. The wholesale microfinance company earned a net profit of Rs. 14.44 crores during this period, up from Rs. 10.44 crores in the corresponding period of the previous fiscal year.
The rise in profit is mainly due to an increase in the net interest income by more than 26 percent. In the six months period, the microfinance earned Rs. 23.05 crores as the net interest income.
First Microfinance has floated loans of Rs. 10.09 Arba which stood at Rs. 10.39 Arba in the fourth quarter of the previous fiscal year. Similarly, the borrowings have declined by 7.62 percent to Rs. 8.73 Arba.
As of Poush’s end 2079 BS, First Microfinance has a paid-up capital of Rs 114.77 crores. Likewise, the reserve and surplus stood at Rs 37.99 crores.
The non-performing loan (NPL) is at 0.17 percent. While the base rate has inclined sharply to 12.47 percent.
The per-share earnings (EPS) and per share net-worth stand at Rs. 25.18 and Rs. 133.27 respectively. At the end of the Poush, the share of FMDBL traded at Rs. 678 which gives the P/E ratio of 26.93. This indicates that the stock FMDBL is fairly priced as compared to its per-share earnings.
The second-quarter report of First Microfinance is summarized in the table below:
First Microfinance Laghubitta (FMDBL): Financial Highlights, Q2, FY 2079/80
|Financial Indicators||Q2, F.Y. 2079/80||Q4, F.Y. 2078/79||Percent Change|
|Paid-up capital (Rs. ‘crores’)||114.77||96.44||19.01|
|Reserve and Surplus (Rs. ‘crores’)||37.99||43.18||-12.02|
|Borrowings (Rs. ‘Arba’)||8.73||9.45||-7.62|
|Loans & Advances (Rs. ‘Arba’)||10.09||10.39||-2.89|
|Financial Indicators||Q2, F.Y. 2079/80||Q2, F.Y. 2078/79||Percent Change|
|Net Interest Income (Rs. ‘crores’)||23.05||18.23||26.44|
|Operating Profit (Rs. ‘crores’)||20.64||14.88||38.71|
|Net Profit (Rs. ‘crores’)||14.44||10.44||38.31|
|Distributable Profit (Rs. ‘crores’)||9.86||–||–|
|Non Performing Loans, NPL (%)||0.17||0||–|
|Base Rate (%)||12.47||10.38||20.13|
|Earnings Per Share, EPS (Rs.)||25.18|
|Networth Per Share ( Rs.)||133.27|
|Market Price Per Share (Rs.) [Poush end, 2079 BS]||678|
Source: Unaudited Q2 Report, FY 2079/80
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.
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