Global IME Laghubitta Records 19% Net Profit Boost in Q1 2081/82, Defying Core Revenue Dip Through Sharp Cut in Impairment Charges
Tue, Nov 12, 2024 10:45 AM on Latest, Financial Analysis, Company Analysis,
Global IME Laghubitta Bittiya Sanstha Limited (GILB) has published its financial performance report for the first quarter of the fiscal year 2081/82, showcasing the company’s net profit surged by 19.02%, reaching Rs. 4.05 crores in Q1 2081/82, up from Rs. 3.40 crores in Q1 2080/81.
This profitability growth was supported by a notable rise in operating profit, which increased by 18.97% to Rs. 5.78 crores from Rs. 4.86 crores in the previous year. Despite an 11.96% decline in net interest income, Global IME Laghubitta managed to enhance its bottom line, likely benefiting from effective cost management and a significant reduction in impairment charges.
Personnel expenses increased by 10.05% to Rs. 8.16 Crores, indicating a rise in operational costs. However, the institution achieved an impressive 85.31% decrease in impairment charges, lowering this expense to Rs. 68.95 lakhs from Rs. 4.69 crores in the previous year. This reduction in impairment charges may have played a significant role in boosting the company's profits.
The company's retained earnings rose by 8.05% to Rs. 54.34 crores, while loans and advances to customers grew by 5.83%, reaching Rs. 9.00 Arba. This increase suggests steady business expansion. Deposits also increased by 1.82%, amounting to Rs. 3.12 Arba, indicating strong deposit mobilization.
The non-performing loan (NPL) ratio improved, decreasing by 8.61% to 4.35% from 4.76%, which reflects better management of loan quality. Additionally, the cost of funds declined slightly by 4.59%, standing at 8.10% compared to 8.49% in the previous year, which may indicate more efficient financial management. However, the capital adequacy ratio dropped by 14.79%, settling at 10.83%, down from 12.71%.
Annualized earnings per share (EPS) for the quarter rose by 19.02% to Rs. 26.16, while the net worth per share increased by 3.61% to Rs. 187.80. The quarter-end price-to-earnings (PE) ratio was 50.46 times, with the market price closing at Rs. 1,320 per share.
Major Highlights:
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Global IME Laghubitta | ||
|---|---|---|---|
| Q1 2081/82 | Q1 2080/81 | Difference | |
| Paid Up Capital | 618,900.05 | 618,900.05* | 0.00% |
| Share Premium | 0.00 | 0.00 | - |
| Retained Earnings | 543,404.81 | 502,927.62* | 8.05% |
| Loans & Advances to Customers | 9,008,448.61 | 8,511,821.57* | 5.83% |
| Deposits | 3,126,458.64 | 3,070,490.83* | 1.82% |
| Net Interest Income | 137,135.45 | 155,758.81 | -11.96% |
| Personnel Expenses | 81,630.82 | 74,177.52 | 10.05% |
| Impairment Charges/Reversal for loans and Advances | 6,895.17 | 46,945.87 | -85.31% |
| Operating Profit | 57,824.55 | 48,602.37 | 18.97% |
| Net Profit | 40,477.19 | 34,007.66 | 19.02% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 2,452.62 | 0.00 | - |
| Capital Adequacy (%) | 10.83 | 12.71 | -14.79% |
| NPL (%) | 4.35 | 4.76 | -8.61% |
| Cost of Fund (%) | 8.10 | 8.49 | -4.59% |
| Annualized EPS (In Rs.) | 26.16 | 21.98 | 19.02% |
| Net Worth per Share (In Rs.) | 187.80 | 181.26 | 3.61% |
| Qtr end PE Ratio (times) | 50.46 | - | - |
| Qtr End Market Price | 1320 | - | - |
