Higher Impairment Charges & Decline in Core Business Revenue Led to 85.22% Fall in Net Profit of Nerude Laghubitta for Q3
Fri, May 12, 2023 12:46 PM on Latest, Financial Analysis, Stock Market,
Nerude Laghubitta Bittiya Sanstha Limited (NLBBL) published the third-quarter report of FY 2079/2080 with a decline in net profit by 85.22%. As per the report published by the company, the net profit decreased to Rs. 3.15 crores as compared to Rs. 21.37 crore in the corresponding quarter of the previous year.
The borrowings of the company decreased by 5.57% to Rs. 4.91 Arba which was Rs. 5.20 Arba in the corresponding quarter of the previous year. The deposits of the company increased by 5.29% to Rs 3.37 arba. The company’s loans and advances have decreased by mere 0.26% to 9.89 Arba in this quarter.
The net interest income (core revenue) has decreased by 30.82% to Rs. 33.05 crores compared to Rs. 47.78 crores in the corresponding quarter of the previous year.
The provision of possible losses stands at Rs 7.10 crores, which has increased by huge margin of 1278.48%, affecting the overall profit for this period.
The paid-up capital of the company stood at Rs. 73.20 crores in this quarter and its reserve and surplus stood at Rs. 52.27 crores.
The company NPL is at a higher level of 9.78%.
Its earnings per share (EPS) stand at Rs. 5.75. The net worth per share is Rs. 171.41. The company traded at a P/E multiple of 106.97 times.
Major Highlights:
| Particulars (In Rs '000) | Nerude Laghubitta | ||
|---|---|---|---|
| Q3 2079/80 | Q3 2078/79 | Difference | |
| Paid Up Capital | 732,000.00 | 600,000.00 | 22.00% |
| Retained Earnings | -17,413.73 | 135,520.33 | |
| Reserves | 540,169.14 | 494,465.76 | 9.24% |
| Borrowings | 4,916,763.27 | 5,206,888.20 | -5.57% |
| Deposits from Customers | 3,378,134.77 | 3,208,308.55 | 5.29% |
| Loans and Advances to Customers | 9,891,688.78 | 9,917,271.12 | -0.26% |
| Net Interest Income | 330,551.20 | 477,831.21 | -30.82% |
| Personnel Expenses | 288,884.42 | 274,049.01 | 5.41% |
| Impairment Charges | 71,008.28 | 5,151.21 | 1278.48% |
| Operating Profit | 48,261.52 | 292,804.61 | -83.52% |
| Net Profit | 31,589.53 | 213,747.36 | -85.22% |
| Capital Adequacy (%) | 9.56 | 9.24 | 3.46% |
| NPL (%) | 9.78 | 4.89 | 100.00% |
| Cost of Fund (%) | 11.68 | 9.70 | 20.41% |
| EPS (In Rs.) | 5.75 | 47.50 | -87.89% |
| Net Worth per Share (In Rs.) | 171.41 | 205.00 | -16.38% |
| Qtr end PE Ratio (times) | 106.97 | - | - |
| Qtr End Market Price | 615.50 | - | - |
