Higher Impairment Charges Led to 65.88% Decline in Net Profit of Nirdhan Utthan Laghubitta for Q2; NPL at 8.38%
Thu, Feb 9, 2023 10:52 AM on Latest, Financial Analysis, Stock Market,
Nirdhan Utthan Laghubitta Bittiya Sanstha Limited (NUBL) has published its unaudited financial report for the second quarter of the fiscal year 2079/80 today. It has stated that net profit has decreased by 65.88% to Rs 16.85 Crores in the second quarter from Rs 49.39 Crores reported in the corresponding quarter of the previous fiscal year 2078/79.
The microfinance has borrowings of Rs 5.69 arba. Likewise, it extended loans of Rs 26.06 Arba from Rs 27.16 arba in corresponding quarter. It has collected deposits of Rs 19.94 arba till the second quarter.
NUBL’s net interest income decreased by 9.09% from Rs 1.06 Arba to Rs 96.68 Crores. For the second quarter, the impairment charges has increased by a huge margin of 772.15% to stand at Rs. 41.12 Crores, which has affected the profitability of the company for this period.
The microfinance’s non-performing loan (NPL) has decreased to 8.38 percent in the review period.
It has paid up capital of Rs 2.19 arba with reserve and surplus of Rs 2.60 Arba till second quarter. Also, the microfinance company proposed 1% cash dividend worth Rs.2.19 Crores and 19% bonus shares worth Rs. 41.70 Crores for its shareholders from the profits of FY 78/79. These bonus dividends are yet to be capitalized by the company. The book closure of the same is on 14th February, 2023.
Major Financial Highlights
| Particulars (In Rs '000) | Nirdhan Utthan Laghubitta | ||
| Q2 2079/80 | Q2 2078/79 | Difference | |
| Paid Up Capital | 2,195,025.00 | 2,195,025.00 | 0.00% |
| Share Premium | 510.11 | 510.11 | 0.00% |
| Retained Earnings | 618,760.52 | 487,303.54 | 26.98% |
| Reserves | 1,989,111.84 | 1,944,783.41 | 2.28% |
| Borrowings | 5,696,755.81 | 6,289,339.00 | -9.42% |
| Deposits from Customers | 19,943,834.86 | 18,182,829.52 | 9.68% |
| Loans and Advances to Customers | 26,062,162.48 | 27,168,994.19 | -4.07% |
| Net Interest Income | 966,831.56 | 1,063,523.18 | -9.09% |
| Personnel Expenses | 432,598.87 | 520,782.59 | -16.93% |
| Impairment Charges | 411,266.19 | 47,155.67 | 772.15% |
| Operating Profit | 239,340.67 | 702,046.70 | -65.91% |
| Net Profit | 168,534.58 | 493,995.22 | -65.88% |
| Capital Adequacy (%) | 14.01 | 11.10 | 26.22% |
| NPL (%) | 8.38 | 15.15 | |
| Cost of Fund (%) | 8.42 | 6.28 | 34.08% |
| EPS (In Rs.) | 15.36 | 45.01 | -65.88% |
| Net Worth per Share (In Rs.) | 218.83 | 210.82 | 3.80% |
| Qtr end PE Ratio (times) | 66.30 | - | - |
| Qtr End Market Price | 1018.10 | - | - |
