First Microfinance Q3 Highlights: Net Profit Rises by 17.12%, NPL Rises to 0.47% and Both Borrowings and Loans Decline
Wed, Apr 19, 2023 5:16 AM on Financial Analysis, Latest,
First Microfinance Laghubitta Bittiya Sanstha (FMDBL) has published its third-quarter report of FY 2079/2080 with a rise in Net Profit by 17.12%. As per the report published by the company, the net profit increased to Rs. 19.45 crore as compared to Rs. 16.61 crore in the corresponding quarter of the previous year.
In the third quarter, the company had Rs 16.68 crores as distributable profit after PL Appropriation and Regulatory Adjustments.
On the other hand, the borrowings of the company decreased by 17.64% to Rs. 7.78 Arba which was Rs. 9.45 Arba in the corresponding quarter of the previous year. The company’s loans and advances to MFIs and Co-operatives also decreased by 14.14% to Rs. 8.92 Arba in this quarter.
Likewise, the net interest income (core revenue) increased by just 3.42% to Rs. 31.76 crore compared to Rs. 30.71 crore in the corresponding quarter of the previous year.
For the third quarter, the impairment charges are at Rs 1.58 crore. The non-performing loan (NPL) of the company has also increased to 0.47% from 0%.
The paid-up capital of the company stood at Rs. 1.14 arba in this quarter and its reserve and surplus were at Rs. 43.30 crores.
Its annualized earnings per share (EPS) stands at Rs. 22.6. The net worth per share stood at Rs. 137.73. The company traded at a P/E multiple of 23.85 times.
Major Financial Highlights
| Particulars (In Rs '000") | First MicroFinance | ||
|---|---|---|---|
| Q3 2079/80 | Q3 2078/79 | Difference | |
| Share Capital | 1,147,746 | 964,492 | 19.00% |
| Share Premium | 0 | 0 | |
| Retained Earnings | 166,804 | 219,941 | -24.16% |
| Reserves | 266,272 | 211,915 | 25.65% |
| Borrowings | 7,788,944 | 9,457,637 | -17.64% |
| Deposits from Customers | - | - | - |
| Loans & Advances to MFIs and Cooperatives | 8,922,971 | 10,392,164 | -14.14% |
| Net Interest Income | 317,635 | 307,143 | 3.42% |
| Impairment Charge/(Reversal) | 15,892 | 43,515 | -63.48% |
| Personnel Expenses | 49,693 | 45,986 | 8.06% |
| Operating Profit | 277,967 | 251,155 | 10.68% |
| Profit/(Loss) for the Year | 194,577 | 166,135 | 17.12% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 166,804 | ||
| Capital Adequacy Ratio (CAR) | 18.03 | 13.05 | 38.16% |
| NPL | 0.47 | 0 | |
| CD and Borrowing Ratio | 116.7 | 110.75 | 5.37% |
| Cost of Fund (%) | 12.58 | 10.55 | 19.24% |
| Interest Rate Spread (%) | 1.84 | 3.16 | -41.77% |
| Annualized EPS (In Rs.) | 22.60 | 22.97 | -1.58% |
| Net Worth per Share (In Rs.) | 137.73 | 144.78 | -4.86% |
| Qtr End PE Ratio (times) | 23.85 | - | - |
| Qtr End Market Price | 539.1 | - | - |
