Ganapati Microfinance loans increase by 61% in the first quarter

November 3, 2019 | Investopaper

Ganapati Microfinance has reported a profit growth of 12 percent in the first quarter of the fiscal year 2076/77. The company earned a net profit of Rs. 55 lakh, up from Rs. 49 lakh in the first quarter of the previous year. The rise in profit is due to the growth in the net interest income by 68 percent. The microfinance generated a net interest income of Rs. 1.97 crores in the first quarter of this fiscal year.

With the issue of IPO, the capital has increased to 10.35 crores. Likewise, the reserve has turned positive to Rs. 2.22 crores. Ganapati Microfinance floated a total loan of Rs. 99.67 crores which is 61 percent higher than previous year’s corresponding quarter.

Similarly, the company is able to reduce its Non-Performing Loans (NPL) to 0.82 percent. In the corresponding quarter of the previous fiscal year, NPL stood at Rs. 1.37 percent.

Likewise, the cost of fund has also declined to 10.53 percent from 10.99 percent.

At the current capital, the Earning Per Share (EPS) is Rs. 21.12. This gives the stock a P/E ratio of 21.50 based on the market price of Rs. 454 at the end of the first quarter. This indicates that the stock is over-priced relative to its earnings.

Ganapati has a networth per share of Rs. 121.41.

The unaudited first quarter report of the fiscal year 2076/77 is summarized in the table below.

Ganapati Microfinance Unaudited First Quarter Report Summary, 2076/77

HEADINGS 1st QTR, 2076/77 1st QTR, 2075/76 PERCENT CHANGE
PAID-UP CAPITAL (Rs. In crores) 10.35 7 47.86
RESERVE (Rs. In crores) 2.22 -0.98
BORROWINGS (Rs. In crores) 70.06 51.46 36.14
DEPOSITS (Rs. In crores) 26.5 15.38 72.30
LOANS  (Rs. In crores) 99.67 62.01 60.73
NET INTEREST INCOME (Rs. In crores) 1.97 1.17 68.38
PROFIT (Rs. In crores) 0.55 0.49 12.24
NON PERFORMING LOANS, NPL (%) 0.82 1.37 -40.15
COST OF FUND (%) 10.53 10.99 -4.19
MARKET PRICE PER SHARE (Rs.) [Ashwin 30, 2076] 454
P/E RATIO 21.50


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