November 17, 2020 | Investopaper
Sana Kisan Laghubitta and RMDC Laghubitta are the two leading whole microfinance companies in Nepal. Both the microfinance have recently published the first quarter report of the fiscal year 2077/78. Both companies have delivered a decent performance in the three months period.
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Here, we will try to make a financial comparison of these two micro finances based on the following indicators:
Paid-Up Capital and Total Reserve
Sana Kisan Laghubitta has a lower paid-up capital of Rs. 100.02 crores while RMDC Laghubitta has the capital of Rs. 103.42 crores. However, Sana Kisan Laghubitta has a greater reserve of Rs. 210.87 crores against RMDC’s reserve of Rs. 158.24 crores.
Borrowings and Loans
The borrowings and loans of Sana Kisan Laghubitta are more than double of that of RMDC. Until the first quarter of this fiscal year, Sana Kisan Laghubitta has borrowed Rs. 18.46 Arba and provided loans of Rs. 19.34 Arba. If we look into RMDC, it has a total borrowings and loans of Rs. 6.97 Arba and Rs. 8.27 Arba respectively.
Net Interest Income and Net Profit
Sana Kisan Laghubitta again excels over RMDC in the profitability indicators. The microfinance earned a net interest income of Rs. 26.74 crores, which is more than double of RMDC. Likewise, Sana Kisan made a net profit of Rs. 14 crores while RMDC profit stood at Rs. 6.06 crores.
NPL and Cost of fund
RMDC leads in NPL with 0.0059 percent while Sana Kisan’s NPL stood at 0.99 percent. However, Sana Kisan Laghubitta has lower cost of the fund of 5 percent against RMDC’s 5.59 percent.
Earnings Per Share (EPS) & Net worth per share
Sana Kisan Laghubitta has more than double the EPS of RMDC. The earnings per share of SKBBL and RMDC stands at Rs. 56 and Rs. 23.43 respectively. Likewise, Sana Kisan Laghubitta edges over RMDC with net worth per share of Rs. 310.82. RMDC has a per share net-worth of Rs 253.
The financial comparison of SKBBL and RMDC is also summarized in the table below:
Financial Comparision: Sana Kisan Laghubitta Vs RMDC Laghubitta
|Financial Indicators||RMDC Laghubitta||Sanakisan Bikas Laghubitta|
|PAID-UP CAPITAL (Rs. In crores)||103.42||100.02|
|RESERVE (Rs. In crores)||158.24||210.87|
|BORROWINGS (Rs. In Arba)||6.97||18.46|
|LOANS (Rs. In Arba)||8.27||19.34|
|NET INTEREST INCOME (Rs. In crores)||10.18||26.74|
|OPERATING PROFIT (Rs. In Crores)||9.62||18.1|
|PROFIT (Rs. In crores)||6.06||14|
|NON PERFORMING LOANS, NPL (%)||0.0059||0.99|
|COST OF FUND (%)||5.59||5|
|EARNINGS PER SHARE, EPS (Rs.)||23.43||56|
|NETWORTH PER SHARE (Rs.)||253||310.82|
|MARKET PRICE PER SHARE (Rs.)[Ashwin end, 2077]||856||1347|
The above figures are based on the unaudited 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.
Note: If you want to see the reports of other companies, Click Here.