Himalayan Laghubitta's Net Profit Drops by 24.81% Despite Increased Core Income; High Impairment Charges Cited as Cause
Fri, Aug 2, 2024 10:27 AM on Financial Analysis, Company Analysis, Latest,
Himalayan Laghubitta Bittiya Sanstha Limited (HLBSL) has released its fourth-quarter financial report for the fiscal year 2080/2081, revealing a notable 24.81% drop in net profit. The company's net profit fell to Rs. 75.50 lakhs, down from Rs. 1 crore in the corresponding quarter of the previous year.
In terms of financial metrics, HLBSL witnessed a 9.03% decrease in deposits, which now stand at Rs. 90.42 crores. Simultaneously, loans and advances experienced a 14.54% decline, totaling Rs. 3.78 arba in this quarter. Despite these declines, the company's core revenue, represented by net interest income, saw a significant increase of 14.22%, amounting to Rs. 23.72 crores compared to Rs. 20.7 crores in the same quarter last year.
The decline in net profit was significantly impacted by a 53.32% rise in impairment charges, which now total Rs. 2.61 crores.
HLBSL's financial position remains with a paid-up capital of Rs. 31.98 crores and a share premium of Rs. 4.55 crores. However, the retained earnings stand at a negative Rs. 22.89 lakhs, and reserves amount to Rs. 10.19 crores.
Moreover, there was a notable decline in the company's Non-Performing Loan (NPL) ratio, which decreased to 3.65% from 2.37%. Other financial indicators include an annualized earnings per share (EPS) of Rs. 2.36 for the fourth quarter of FY 2080/81 and a net worth per share of Rs. 145.41.
Major Financial Highlights:
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Himalayan Laghubitta | ||
|---|---|---|---|
| Q4 2080/81 | Q4 2079/80 | Difference | |
| Paid Up Capital | 319,818.20 | 319,818.20* | 0.00% |
| Share Premium | 45,543.05 | 45,543.05* | 0.00% |
| Retained Earnings | -2,289.46 | 543.71* | - |
| Reserves | 101,975.97 | 92,472.17* | 10.28% |
| Deposits | 904,279.52 | 994,026.14* | -9.03% |
| Loans & Advances to Customers | 3,785,788.29 | 4,430,101.28* | -14.54% |
| Borrowings | 2,602,697.96 | 3,170,440.84* | -17.91% |
| Net Interest Income | 237,259.57 | 207,720.14 | 14.22% |
| Personnel Expenses | 176,491.34 | 158,717.49 | 11.20% |
| Impairment Charges | 26,194.52 | 17,084.61 | 53.32% |
| Operating Profit | 10,621.13 | 13,072.39 | -18.75% |
| Net Profit | 7,550.22 | 10,041.27 | -24.81% |
| Distributable Profit | -2,289.46 | 0.00 | - |
| Capital Adequacy (%) | 10.94 | 8.87 | 23.34% |
| NPL (%) | 3.65 | 2.37 | 54.01% |
| Cost of Fund (%) | 8.76 | 11.34 | -22.75% |
| EPS (In Rs.) | 2.36 | 3.14 | -24.81% |
| Net Worth per Share (In Rs.) | 145.41 | 143.32 | 1.46% |
| Qtr end PE Ratio (times) | 542.19 | - | - |
| Qtr End Market Price | 1280 | - | - |
