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Himalayan Laghubitta Reports Strong Growth in Q3 FY 2081/82: Net Profit Surges by 369%

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NepseTrading

Himalayan Laghubitta Reports Strong Growth in Q3 FY 2081/82: Net Profit Surges by 369%

Kathmandu, Nepal – Himalayan Laghubitta Bittiya Sanstha Limited has delivered an impressive financial performance for the third quarter of Fiscal Year 2081/82, showcasing significant growth in key profitability and operational indicators compared to the same period last year (Chaitra 2080).

Key Financial Highlights:

  1. Net Profit Soars:
    The microfinance institution posted a net profit of NPR 53.49 million, a staggering 369.34% increase from NPR 11.39 million reported in Q3 of FY 2080/81. This surge is primarily attributed to a strong rise in operating income and improved cost management.

  2. EPS Improves Substantially:
    Earnings per share (EPS) jumped to NPR 22.30 from NPR 4.75, indicating higher returns for shareholders. The distributable EPS stood at NPR 4.63, nearly doubling from the previous year's NPR 2.59.

  3. Net Interest Income Up by 53%:
    The company recorded a 53.07% increase in Net Interest Income, reaching NPR 244.70 million, up from NPR 159.87 million in the same quarter last year.

  4. Total Operating Income Climbs by 43%:
    Total operating income stood at NPR 289.66 million, compared to NPR 202.49 million in Chaitra 2080 — a 43.05% rise, supported by both net interest and fee-based income.

  5. Impairment Charges Surge:
    Impairment charges witnessed a sharp rise of 287.61%, increasing from NPR 1.76 million to NPR 6.82 million, likely reflecting more prudent provisioning practices or a rise in risk-weighted loans.

  6. PE Ratio Decreases:
    The Price-to-Earnings (PE) ratio dropped to 43.05 from 152.58, suggesting the stock may be more reasonably valued now relative to earnings.

Balance Sheet and Financial Strength:

  • Reserves and Surplus grew by 39.15%, reaching NPR 189.47 million, reflecting strengthened internal capital.

  • Loan and Advances increased by 30.12%, amounting to NPR 4.87 billion, highlighting robust credit expansion.

  • Deposits and Borrowings rose by 27.38% to NPR 4.47 billion, supporting its lending activities.

  • Non-Performing Loans (NPL) saw a minor uptick to 5.34% from 4.61%, which remains within a manageable range for microfinance institutions.

  • Cost of Fund decreased slightly to 6.86%, compared to 8.69%, contributing to better margins.

  • Interest Rate Spread widened to 8.14%, up from 6.31%, enhancing overall profitability.

Capital and Compliance:

  • The capital adequacy ratio, measured as Capital Fund to RWA, was 8.92%, comfortably above regulatory requirements.

  • The Net Worth per Share improved to NPR 129.48, showing financial strengthening.

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