First Microfinance's (FMDBL) Decline in Operating Profit and Higher Impairment Charges Leads to Decreased Net Profits in Q4
Mon, Jul 31, 2023 8:15 AM on Financial Analysis, Latest,
First Microfinance Laghubitta Bittiya Sanstha Limited (FMDBL) has published its fourth quarter report for the recently concluded financial year 2079-80 with a decline in Net Profit by 23.39 percent totaling to Rs. 19.69 crores as opposed to Rs. 25.70 crores that the company had profited in the corresponding quarter of the FY 2078-79.
The microfinance company has incurred a massive spike in impairment charges which amounts to Rs. 11.65 crores compared to only Rs. 4.32 crores that the company had incurred up to the corresponding quarter of the FY 078-79, which has negatively affected the profitability of the company.
Despite witnessing a minor improvement in Net Interest Income, core revenue, by 1.87 percent, FMDBL has experienced a sharp decrease in its Operating profit by 23.42 percent and totals to only Rs. 28.47 crores up to the last quarter of the financial year 2079-80.
The Earnings per Share (EPS) of the company stands at Rs. 17.16 after a comparative decline of 35.62 percent while the company’s Net worth per Share is Rs. 137.87.
The company’s Non-performing Loan (NPL) from an impressive zero percent has come up to 0.66 percent.
Both distributable profit and distributable profit per share have declined considerably by 19.11 and 32.01 percent, respectively. The company has Rs. 17.71 crores in the form of distributable profit to its shareholders while the distributable profit per share is Rs. 15.44.
FMDBL maintains Rs. 1.14 Arba as paid-up capital, while it has Rs. 18.08 crores in the form of retained earnings and Rs. 25.38 crores in reserves.
Major Financial Highlights:
| Particulars (In Rs '000) | First Microfinance Laghubitta | ||
|---|---|---|---|
| Q4 2079/80 | Q4 2078/79 | Difference | |
| Paid Up Capital | 1,147,745.96 | 964,492.40 | 19.00% |
| Retained Earnings | 180,860.03 | 219,940.89 | -17.77% |
| Reserves | 253,832.59 | 211,914.85 | 19.78% |
| Borrowings | 7,465,041.95 | 9,457,636.55 | -21.07% |
| Loans and Advances to Customers | 20,827.29 | 18,943.36 | 9.95% |
| Net Interest Income | 433,434.04 | 425,472.67 | 1.87% |
| Personnel Expenses | 57,707.30 | 64,262.90 | -10.20% |
| Impairment Charges | 116,580.94 | 43,253.55 | 169.53% |
| Operating Profit | 284,734.89 | 371,833.19 | -23.42% |
| Net Profit | 196,930.67 | 257,052.98 | -23.39% |
| Capital Adequacy (%) | 20.19 | 13.93 | 44.94% |
| NPL (%) | 0.66 | 0.00 |
66% |
| Cost of Fund (%) | 12.02 | 11.38 | 5.62% |
| EPS (In Rs.) | 17.16 | 26.65 | -35.62% |
| Net Worth per Share (In Rs.) | 137.87 | 121.97 | 13.04% |
| Distributable Profit | 177,175.60 | 219,031.35 | -19.11% |
| Distributable Profit per Share | 15.44 | 22.71 | -32.01% |
| Qtr end PE Ratio (times) | 42.91 | - | - |
| Qtr End Market Price | 736.30 | - | - |
