Decline in Impairment Charges and Rise in Core Revenue Propel CYC Nepal Laghubitta to 263.37% Increase in Net Profit in Q3 FY 2080/81
Thu, May 2, 2024 12:59 PM on Financial Analysis, Company Analysis, Latest,
CYC Nepal Laghubitta Bittiya Sanstha Limited (CYCL) has unveiled its third-quarter financial report for the fiscal year 2080/2081, demonstrating a remarkable surge in performance. The company disclosed an impressive 263.37% increase in net profit, soaring to Rs. 2.8 crores from Rs. 77.07 lakhs compared to the corresponding quarter last year.
A notable contributor to this stellar financial performance was the significant 17.99% rise in core revenue, specifically net interest income, which reached Rs. 20.73 crores from Rs. 17.57 crores in the same quarter of the previous year. This substantial increase in revenue played a pivotal role in driving up the net profits for CYCL.
Furthermore, CYCL experienced positive growth in key operational metrics. Deposits increased by 5.11% to Rs. 2.26 Arba, while loans and advances witnessed a modest uptick of 10.93%, reaching Rs. 5.74 Arba during the third quarter.
Throughout Q3, CYCL reported impairment charges totaling Rs. 54.87 lakhs, reflecting a noteworthy decline of 89.04%. This decline in impairment charges contributed significantly to the increase in net profit for the company.
In terms of financial position, CYCL reported a paid-up capital of Rs. 26.64 Crore, accompanied by reserves and surplus standing at Rs. 31.10 crores. The annualized earnings per share (EPS) stood at Rs. 14.02, with the net worth per share recorded as Rs. 216.40. Notably, CYCL traded at a P/E multiple of 123.05 times during the period.
Major Financial Highlights:
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | CYC Nepal Laghubitta | ||
|---|---|---|---|
| Q3 2080/81 | Q3 2079/80 | Difference | |
| Paid Up Capital | 266,424.39 | 266,424.39* | 0.00% |
| Share Premium | 0.00 | 0.00 | - |
| Retained Earnings and Reserves | 310,126.41 | 324,426.57* | -4.41% |
| Deposits | 2,265,841.33 | 2,155,690.09* | 5.11% |
| Loans & Advances | 5,742,248.21 | 5,176,451.01* | 10.93% |
| Net Interest Income | 207,327.09 | 175,720.11 | 17.99% |
| Personnel Expenses | 170,825.55 | 128,341.03 | 33.10% |
| Impairment Charges/Reversal for loans and Advances | 5,487.77 | 50,081.16 | -89.04% |
| Operating Profit | 34,050.69 | 8,707.53 | 291.05% |
| Net Profit | 28,007.89 | 7,707.78 | 263.37% |
| Distributable Profit | 21,846.15 | 0.00 | - |
| Capital Adequacy (%) | 8.53 | 9.64 | -11.51% |
| NPL (%) | 4.74 | 9.84 | -51.83% |
| Cost of Fund (%) | 9.41 | 10.86 | -13.35% |
| EPS (In Rs.) | 14.02 | 3.86 | 263.37% |
| Net Worth per Share (In Rs.) | 216.40 | 221.77 | -2.42% |
| Qtr end PE Ratio (times) | 123.05 | - | - |
| Qtr End Market Price | 1724.8 | - | - |
