Himalayan Laghubitta Reports Over 369% Surge in Net Profit in Q3 FY 2081/82; EPS Reached Rs. 22.30
Fri, Apr 25, 2025 8:41 AM on Financial Analysis, Highlight News, Company Analysis,
Himalayan Laghubitta Bittiya Sanstha Limited (HLBSL) has reported an impressive growth in profitability in the third quarter of the fiscal year 2081/82. The company posted a net profit of Rs. 5.34 crores, a staggering 369.32% increase compared to Rs. 1.13 crores recorded in the same quarter of the previous fiscal year. This growth was primarily fueled by a notable rise in net interest income and efficient management of funding costs.
The company's net interest income soared by 53.07%, reaching Rs. 24.47 crores, while the operating profit jumped to Rs. 7.64 crores, up from Rs. 1.62 cores—a remarkable growth of 369.75%. In line with its profitability, the Earnings Per Share (EPS) also rose sharply to Rs. 22.30, compared to Rs. 4.75 in the corresponding period last year.
On the balance sheet side, Himalayan Laghubitta’s loans and advances to customers increased by 30.12%, amounting to Rs. 4.87 Arba, while borrowings rose by 31.69% to Rs. 3.42 Arba. Similarly, customer deposits saw a growth of 14.97%, reaching Rs. 1.04 Arba. The institution also improved its retained earnings, which stood at Rs. 1.11 crores, bouncing back from a negative balance in the previous year. Likewise, its reserves climbed by 36.69% to Rs. 13.28 crores.
However, the microfinance institution has also witnessed a rise in Non-Performing Loans (NPL), which increased from 4.61% to 5.34%, marking a 15.84% deterioration in asset quality. Additionally, impairment charges spiked by 287.57%, indicating increased provisioning requirements. Its Capital Adequacy Ratio (CAR) also declined from 9.57% to 8.92%, reflecting a 6.79% drop, which may be an area of concern for regulatory compliance and future risk absorption.
On a positive note, the cost of fund improved significantly, dropping to 6.86% from 8.69%, a decline of 21.06%, which helped boost the company’s net margin. The net worth per share also increased to Rs. 159.24, showing an 11.69% improvement over the previous year. As of the third quarter’s end, the company’s price-to-earnings (PE) ratio stood at 43.05 times, with a market price of Rs. 959.99.
Major Highlights:
* Figure is of Immediate Fiscal Year Ending
| Particulars (In Rs '000) | Himalayan Laghubitta | ||
|---|---|---|---|
| Q3 2081/82 | Q3 2080/81 | Difference | |
| Paid Up Capital | 319,818.20 | 319,818.20* | 0.00% |
| Share Premium | 45,543.05 | 45,543.05* | 0.00% |
| Retained Earnings | 11,112.48 | -6,546.04* | - |
| Reserves | 132,812.99 | 97,161.84* | 36.69% |
| Borrowings | 3,427,520.42 | 2,602,697.96* | 31.69% |
| Deposits from Customers | 1,039,652.41 | 904,279.52* | 14.97% |
| Loans and Advances to Customers | 4,871,516.56 | 3,743,795.73* | 30.12% |
| Net Interest Income | 244,708.12 | 159,870.66 | 53.07% |
| Personnel Expenses | 146,164.66 | 131,436.09 | 11.21% |
| Impairment Charges | 6,822.94 | 1,760.43 | 287.57% |
| Operating Profit | 76,416.52 | 16,267.64 | 369.75% |
| Net Profit | 53,491.57 | 11,397.65 | 369.32% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 11,112.48 | 0.00 | - |
| Capital Adequacy (%) | 8.92 | 9.57 | -6.79% |
| NPL (%) | 5.34 | 4.61 | 15.84% |
| Cost of Fund (%) | 6.86 | 8.69 | -21.06% |
| EPS (In Rs.) | 22.30 | 4.75 | 369.32% |
| Net Worth per Share (In Rs.) | 159.24 | 142.57 | 11.69% |
| Qtr end PE Ratio (times) | 43.05 | - | - |
| Qtr End Market Price | 959.99 | - | - |
