Deprosc Laghubitta's Profit declined by 12.12% in Q4; Still Bonus Approved by 20th AGM not adjusted
Wed, Aug 10, 2022 6:29 AM on Financial Analysis, Latest,
Deprosc Laghubitta Bittiya Sastha Limited (DDBL) has published its fourth-quarter report for the FY 2078/2079 with a decline in Net Profit by 12.12%. DDBL's net profit has decreased from Rs. 65.31 crore in the fourth quarter of FY 2077/2078 to Rs. 57.40 crore in the fourth quarter of FY 2078/2079.
In the same quarter, the microfinance company has Rs 41.72 crores as distributable profit after PL Appropriation and Regulatory Adjustments. This amount can be used for distributing dividends.
Microfinance borrowings increased by 2.28% to Rs. 7.96 arba and Deposits from Customers increased by 21.86% to Rs 7.97 arba whereas loans and advances to MFIs and cooperatives increased by 17.89% to Rs. 18.34 arba till the fourth quarter.
Deprosc's Net Interest Income- NII (core business income) has increased by just 3.45% to Rs. 1.38 arba compared to the corresponding quarter of the previous year.
The Laghubitta company's paid-up capital stands at Rs. 1.15 Arba with Rs. 1 Arba in Reserve and surplus. The Non-performing loan (NPL) is 1.03%.
Similarly, the Cost of funds stands at 18.13% and Net Interest Spread is at 5.9%.
The earnings per share (EPS) stood at Rs. 49.65 and Net worth per share stood at Rs. 267.19. The company traded at a P/E multiple of 18.93 times.
Note: The 20% bonus shares and 1.053% cash dividend approved by 20th AGM are still not adjusted in a published report due to Nepal Rastra Bank's instruction and NRB has instructed not to distribute dividends until and unless the company searches partner for merger and acquisitions.
Hence, the published ratio (EPS, PE, Networth) differs once the bonus is adjusted.
Major Highlights:
| Particulars (In Rs '000") | Deprosc Laghubitta | ||
| Q4 2078/79 | Q4 2077/78 | Difference | |
| Share Capital | 1,156,249 | 1,156,249 | 0.00% |
| Share Premium | 0 | 0 | |
| Retained Earnings | 1,007,006 | 590,223 | 70.61% |
| Reserves | 926,178 | 806,510 | 14.84% |
| Borrowings | 7,961,147 | 7,784,028 | 2.28% |
| Deposits from Customers | 7,970,179 | 6,540,573 | 21.86% |
| Loans & Advances to Customers | 18,344,799 | 15,561,278 | 17.89% |
| Net Interest Income | 1,385,319 | 1,339,093 | 3.45% |
| Impairment Charge/(Reversal) | -8,070 | -150,674 | -94.64% |
| Personnel Expenses | 587,543 | 529,324 | 11.00% |
| Operating Profit | 819,939 | 991,714 | -17.32% |
| Profit/(Loss) for the Year | 574,023 | 653,187 | -12.12% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 417,258 | ||
| Capital Adequacy Ratio (CAR) | 14.57 | 13.80 | 5.58% |
| NPL | 1.03 | 0.92 | 11.96% |
| CD and Borrowing Ratio | 112.4 | 107.15 | 4.90% |
| Cost of Fund (%) | 8.13 | 6.27 | 29.67% |
| Interest Rate Spread (%) | 5.9 | 8.58 | -31.24% |
| EPS (In Rs.) | 49.65 | 56.49 | -12.12% |
| Net Worth per Share (In Rs.) | 267.19 | 220.80 | 21.01% |
| Qtr End PE Ratio (times) | 18.93 | - | - |
| Qtr End Market Price | 940 | - | - |
