Higher Impairment Charges Led to 8.81% Decline in Net Profit of RSDC Laghubitta for Q3; NPL Rises to 1.37%
Tue, Apr 18, 2023 7:18 AM on Financial Analysis, Stock Market, Latest,
RSDC Laghubitta Bittiya Sanstha (RSDC) has published its third-quarter report of FY 2079/2080 with a decline in Net Profit by 8.81%. As per the report published by the company, the net profit decreased to Rs. 8.69 crores as compared to Rs. 9.43 crores in the corresponding quarter of the previous year.
In the third quarter, the company had Rs 5.63 crores as distributable profit after PL Appropriation and Regulatory Adjustments.
On the other hand, the borrowings of the company increased by 32.42% to Rs. 5.93 Arba which was Rs. 4.47 Arba in the corresponding quarter of the previous year. The company’s loans and advances to co-operatives also increased by 24.60% to Rs. 6.71 Arba in this quarter.
Likewise, the net interest income (core revenue) increased by 29.22% to Rs. 21.40 crores compared to Rs. 16.56 crores in the corresponding quarter of the previous year.
For the third quarter, the impairment charges has increased by 280.85% to stand at Rs. 7.37 Crores, which has affected the profitability of the company for this period. The non-performing loan (NPL) of the company has also increased to 1.37% from 0.40%.
The paid-up capital of the company stood at Rs. 86.95 crores in this quarter and its reserve and surplus were at Rs. 16.17 crores.
Its annualized earnings per share (EPS) stands at Rs. 13.19. The net worth per share stood at Rs. 118.60. The company traded at a P/E multiple of 38.51 times.
Major Financial Highlights
| Particulars (In Rs '000) | RSDC Laghubitta | ||
| Q3 2079/80 | Q3 2078/79 | Difference | |
| Paid Up Capital | 869,568.20 | 805,155.00 | 8.00% |
| Retained Earnings | 68,445.54 | 82,468.95 | -17.00% |
| Reserves | 93,318.31 | 86,642.02 | 7.71% |
| Borrowings | 5,931,351.27 | 4,479,321.43 | 32.42% |
| Loans & Advances to MFIs & Cooperatives | 6,719,142.09 | 5,392,543.17 | 24.60% |
| Net Interest Income | 214,044.37 | 165,649.21 | 29.22% |
| Personnel Expenses | 29,036.10 | 26,006.10 | 11.65% |
| Impairment Charges | 73,762.55 | 19,367.62 | 280.85% |
| Operating Profit | 122,891.45 | 134,766.56 | -8.81% |
| Net Profit | 86,024.01 | 94,336.59 | -8.81% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 56,359.72 | ||
| Capital Adequacy (%) | 15.98 | 20.27 | -21.16% |
| NPL (%) | 1.37 | 0.40 | |
| Cost of Fund (%) | 12.78 | 5.07 | 152.07% |
| Annualized EPS (In Rs.) | 13.19 | 15.62 | -15.57% |
| Net Worth per Share (In Rs.) | 118.60 | 110.24 | 7.58% |
| Qtr end PE Ratio (times) | 38.51 | - | - |
| Qtr End Market Price | 508 | - | - |
