First Microfinance Laghubitta Reports 38.41% Drop in Net Profit for Q2 FY 2081/82, EPS Falls to Rs. 7.78
Fri, Jan 24, 2025 8:52 AM on Financial Analysis, Highlight News, Company Analysis,
First Microfinance Laghubitta Bittiya Sanstha Limited (FMDBL) has reported a decline in its net profit by 38.41% for the second quarter of the fiscal year 2081/82, amounting to Rs. 5.23 crore. The decrease in profitability is attributed to reduced net interest income and a contraction in its loan portfolio.
The company’s retained earnings fell significantly by 67.71%, standing at Rs. 3.87 crore. However, reserves and surplus witnessed a modest growth of 5.76%, reaching Rs. 30.19 crore.
Borrowings dropped by 20.84% to Rs. 5.51 arba, reflecting a reduced reliance on external funding. Similarly, loans and advances to microfinance institutions (MFIs) and cooperatives declined by 18.10%, amounting to Rs. 6.06 arba.
Net interest income, a key driver of revenue, declined by 27.56% to Rs. 11.14 crore, further contributing to the lower operating and net profits. The company’s annualized Earnings Per Share (EPS) also decreased by 43.49% and now stands at Rs. 7.78.
Despite these setbacks, FMDBL maintained a strong capital adequacy ratio of 25.21%. However, the net worth per share fell by 5.67%, now standing at Rs. 125.33. With a quarter-end market price of Rs. 735, the company’s Price-to-Earnings (PE) ratio stands at 94.50 times.
Major Highlights:
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | First Microfinance Laghubitta | ||
|---|---|---|---|
| Q2 2081/82 | Q2 2080/81 | Difference | |
| Paid Up Capital | 1,344,871.32 | 1,233,826.90* | 9.00% |
| Share Premium | 0.00 | 0.00* | - |
| Retained Earnings | 38,734.53 | 119,946.66* | -67.71% |
| Reserves | 301,902.73 | 285,457.12* | 5.76% |
| Borrowings | 5,516,184.10 | 6,968,540.76* | -20.84% |
| Loans & Advances to MFIs & Cooperatives | 6,067,112.67 | 7,408,077.36* | -18.10% |
| Net Interest Income | 111,432.91 | 153,832.26 | -27.56% |
| Personnel Expenses | 22,544.03 | 27,237.98 | -17.23% |
| Impairment Charges | 8,513.47 | 0.00 | - |
| Operating Profit | 74,715.47 | 131,965.15 | -43.38% |
| Net Profit | 52,300.83 | 84,914.51 | -38.41% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 39,194.02 | 63,386.28 | -38.17% |
| Capital Adequacy (%) | 25.21 | 23.49 | 7.32% |
| NPL (%) | 4.44 | 2.87 | 54.70% |
| Cost of Fund (%) | 7.14 | 10.51 | -32.06% |
| Annualized EPS (In Rs.) | 7.78 | 13.76 | -43.49% |
| Net Worth per Share (In Rs.) | 125.33 | 132.86 | -5.67% |
| Qtr end PE Ratio (times) | 94.50 | - | - |
| Qtr End Market Price | 735 | - | - |
