Higher Staff Expenses & Provision Led to Decline in Net Profit of CYC Nepal Laghubitta by 92.29% in Q3; NPL at 9.84%
Wed, May 10, 2023 11:26 AM on Latest, Financial Analysis, Stock Market,
CYC Nepal Laghubitta Bittiya Sanstha Limited (CYCL) published the third-quarter report of FY 2079/2080 with a decline in Net Profit by 92.29%. As per the report published by the company, the net profit decreased to Rs. 77.07 Lakhs as compared to Rs. 9.99 crore in the corresponding quarter of the previous year.
The borrowings of the company increased by 44.11% to Rs. 2.45 Arba which was Rs. 1.70 Arba in the corresponding quarter of the previous year. The deposits of the company increased by 47.94% to Rs 2.05 Arba. The company’s loans and advances have also increased by 51.69% to 5.22 Arba in this quarter.
The net interest income - NII (core revenue) has increased by 11.39% to Rs. 17.57 crores compared to Rs. 15.77 crores in the corresponding quarter of the previous year. Despite having an increment in NII, the company reported a decline in net profit because of the high personnel expenses (staff expenses) which have increased by 30.59%, and the provision for possible losses (impairment charges) which stands at Rs. 5 Crores for this quarter.
The paid-up capital of the company stood at Rs. 26.64 crores in this quarter and its reserve and surplus stood at Rs 30.91 crores.
Its annualized earnings per share (EPS) stand at Rs. 3.86. The net worth per share is Rs. 216.03. The company traded at a P/E multiple of 346.09 times.
CYC Laghubitta and Adhikhola Laghubitta Bittiya Sanstha Limited (AKBSL) also signed Memorandum of Understanding (MoU) agreement for merger on Ashad 22, 2079. CYCL and AKBSL had signed a merger deal at a swap ratio of 100:70. Likewise, "CYC Laghubitta Bittiya Sanstha Limited" has been agreed upon as the name of the new company that has been formed as a result of the merger. The companies have already started the joint business on Falgun 30, 2079.
Major Financial Highlights:
| Particulars (In Rs '000) | CYC Nepal Laghubitta | ||
|---|---|---|---|
| Q3 2079/80 | Q3 2078/79 | Difference | |
| Paid Up Capital | 266,424.39 | 121,641.84 | 119.02% |
| Retained Earnings | 62,405.53 | 88,831.08 | |
| Reserves | 246,716.39 | 197,255.51 | 25.07% |
| Borrowings | 2,459,636.34 | 1,706,813.01 | 44.11% |
| Deposits from Customers | 2,050,839.70 | 1,386,287.95 | 47.94% |
| Loans and Advances to Customers | 5,223,959.13 | 3,443,778.12 | 51.69% |
| Net Interest Income | 175,720.11 | 157,745.10 | 11.39% |
| Personeel Expenses | 128,341.03 | 98,279.82 | 30.59% |
| Impairment Charges | 50,081.16 | ||
| Write Back | 12,400.20 | ||
| Operating Profit | 8,707.53 | 89,957.87 | -90.32% |
| Net Profit | 7,707.78 | 99,916.68 | -92.29% |
| Capital Adequacy (%) | 9.64 | 9.26 | 4.10% |
| NPL (%) | 9.84 | 1.97 | |
| Cost of Fund (%) | 10.86 | 9.55 | 13.72% |
| EPS (In Rs.) | 3.86 | 109.52 | -96.48% |
| Net Worth per Share (In Rs.) | 216.03 | 335.19 | -35.55% |
| Qtr end PE Ratio (times) | 346.09 | - | - |
| Qtr End Market Price | 1335.00 | - | - |
