April 18, 2022 | Investopaper
First Microfinance Laghubitta Bittiya Sanstha Limited (FMDBL) has reported a 46 percent surge in net profit until the third quarter of the current fiscal year 2078/79. The wholesale microfinance company earned a net profit of Rs. 16.61 crores during this period, up from Rs. 11.34 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 60 percent. In the nine months period, the microfinance earned Rs. 30.71 crores as the net interest income. With the growth in loans by 27 percent as compared to last year, the net interest income also increased.
First Microfinance has floated loans of Rs. 10.41 Arba which stood at Rs. 8.15 Arba in the third quarter of the previous fiscal year. Similarly, the borrowings have grown by 10 percent to Rs. 9.54 Arba.
As of Chaitra’s end 2078 BS, First Microfinance has a paid-up capital of Rs 96.44 crores. Likewise, the reserve and surplus stood at Rs 32.63 crores.
The non-performing loan (NPL) is at an impressive zero percent. While the cost of funds has inclined sharply to 10.55 percent.
The per-share earnings (EPS) and per share net-worth stand at Rs. 22.97 and Rs. 133.83 respectively. At the end of the Poush, the share of FMDBL traded at Rs. 721.4 which gives the stock a P/E ratio of 31.41. This indicates that the stock FMDBL is relatively overpriced as compared to its per-share earnings.
The third-quarter report of First Microfinance is summarized in the table below:
First Microfinance Laghubitta (FMDBL): Financial Highlights, Q3, FY 2078/79
|Financial Indicators||Q3, F.Y. 2078/79||Q3, F.Y. 2077/78||Percent Change|
|Paid-up capital (Rs. ‘crores’)||96.44||87.68||9.99|
|Reserve and Surplus (Rs. ‘crores’)||32.63||25.13||29.84|
|Borrowings (Rs. ‘Arba’)||9.54||8.61||10.80|
|Loans & Advances (Rs. ‘Arba’)||10.41||8.15||27.73|
|Net Interest Income (Rs. ‘crores’)||30.71||19.17||60.20|
|Operating Profit (Rs. ‘crores’)||25.11||15.54||61.58|
|Net Profit (Rs. ‘crores’)||16.61||11.34||46.47|
|Distributable Profit (Rs. ‘crores’)||11.82||–||–|
|Non Performing Loans, NPL (%)||0||0||0|
|Cost of Funds (%)||10.55||5.42||94.65|
|Earnings Per Share, EPS (Rs.)||22.97|
|Networth Per Share ( Rs.)||133.83|
|Market Price Per Share (Rs.) [Chaitra end, 2078 BS]||721.4|
Source: Unaudited Q3 Report, FY 2078/79
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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