Asha Laghubitta Reports Rs. 2.36 Crore Net Profit in Q2 2081/82, Marking Turnaround from Loss; EPS at Rs. 6.45
Thu, Feb 6, 2025 9:27 AM on Financial Analysis, Highlight News, Company Analysis,
Asha Laghubitta Bittiya Sanstha Limited (ALBSL) has posted a net profit of Rs. 2.36 crore in the second quarter (Q2) of the fiscal year 2081/82, marking a significant recovery from a net loss of Rs. 3.28 crore in the same period last year. This turnaround is primarily driven by a surge in net interest income and a reduction in the cost of funds.
The company’s net interest income soared by 137.16% to Rs. 34.01 crore, significantly contributing to profitability. However, impairment charges increased sharply by 804.46% to Rs. 13.08 crore, indicating higher provisions for potential loan losses. Despite this, operating profit stood at Rs. 3.36 crore, a notable improvement from a negative Rs. 3.33 crore recorded in Q2 2080/81.
Asha Laghubitta’s total deposits from customers grew by 6.36% to Rs. 2.98 Arba, while loans and advances to microfinance institutions (MFIs) and cooperatives increased by 3.21% to Rs. 9.86 Arba. The company also witnessed a decline in its cost of funds, which dropped from 10.28% in Q2 2080/81 to 7.88% in the current quarter, easing interest expenses.
Despite the improvement in profitability, retained earnings plummeted by 89.92% to Rs. 1.01 crore, suggesting adjustments in profit allocation. The capital adequacy ratio saw a slight dip to 9.38% from 9.65%, while the non-performing loan (NPL) ratio remained stable at 4.92%, reflecting a marginal improvement from 4.93%.
In terms of market performance, the company’s annualized earnings per share (EPS) improved to Rs. 6.45 from a negative Rs. 10.25, though its net worth per share declined by 11.10% to Rs. 147.95. At the end of the quarter, Asha Laghubitta’s stock was trading at Rs. 804 per share, with a price-to-earnings (P/E) ratio of 124.74 times.
Report:
Major Financial Highlights:
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Asha Laghubitta | ||
|---|---|---|---|
| Q2 2081/82 | Q2 2080/81 | Difference | |
| Paid Up Capital | 733,046.28 | 641,616.00* | 14.25% |
| Share Premium | 0.00 | 0.00 | - |
| Retained Earnings | 10,139.51 | 100,581.47* | -89.92% |
| Reserves | 341,336.45 | 325,604.34* | 4.83% |
| Borrowings | 6,312,182.12 | 6,394,859.36* | -1.29% |
| Deposits from Customers | 2,981,867.12 | 2,803,571.68* | 6.36% |
| Loans & Advances to MFIs & Cooperatives | 9,862,821.51 | 9,555,877.72* | 3.21% |
| Net Interest Income | 340,112.71 | 143,407.93 | 137.16% |
| Personnel Expenses | 178,007.71 | 157,227.12 | 13.22% |
| Impairment Charges | 130,837.09 | 14,465.79 | 804.46% |
| Operating Profit | 33,636.69 | -33,331.23 | - |
| Net Profit | 23,624.33 | -32,883.49 | - |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 10,139.51 | 0.00 | - |
| Capital Adequacy (%) | 9.38 | 9.65 | -2.80% |
| NPL (%) | 4.92 | 4.93 | -0.20% |
| Cost of Fund (%) | 7.88 | 10.28 | -23.35% |
| Annualized EPS (In Rs.) | 6.45 | -10.25 | -162.88% |
| Net Worth per Share (In Rs.) | 147.95 | 166.42 | -11.10% |
| Qtr end PE Ratio (times) | 124.74 | - | - |
| Qtr End Market Price | 804 | - | - |
