Merged Entity SKBBL Unveils Q4 Report With Distributable Profit per Share at Impressive Rs. 52.21 and Bad Loan Below One Percent
Mon, Aug 14, 2023 8:22 AM on Financial Analysis, Latest,
Sana Kisan Bikas Laghubitta Bittiya Sanstha Limited (SKBBL) has published its fourth-quarter report for the recently concluded financial year 2079-80, with a steady increase in its Net Profits by 16.93 percent, totaling Rs. 81.41 crores as of the period.
The deposits from customers total Rs. 1.85 Arba while the loan disbursement has experienced a significant increase of 69.58 percent. Loans and advances to customers amount to Rs 6.77 crores, until Q4 of FY 2079-80.
The Net Interest Income has also experienced a considerable increase of 23.97 percent, totaling Rs. 1.66 Arba as of the end of the last quarter of FY 2079-80. Until the same period, the impairment allocation has increased significantly, summing up to Rs. 17.13 crores.
The company has Rs. 1.45 Arba which is available for distribution amongst its shareholders along with distributable profit per share at Rs. 51.14 as of Ashad 31, 2080.
Despite a steady increase in its Net profits the Earnings per Share (EPS) of the company has declined to stand at Rs. 24.44, alongside a Net worth per Share of Rs. 258.16.
SKBBL maintains Rs. 3.33 Arba in paid-up capital and Rs. 5.26 Arba in the form of Reserve and Surplus, putting the company in robust financial standing.
Earlier, Sana Kisan Bikas Laghubitta Bittiya Sanstha Limited (SKBBL) and RMDC Laghubitta Bittiya Sanstha Limited (RMDC), a licensed financial institution of the "D" completed merger process and began joint transaction.
The companies merged at a swap ratio of 1:0.87. As a result, investors who owned 100 shares of RMDC Microfinance received 87 shares of the merged company.
"Sana Kisan Bikas Laghubitta Bittiya Sanstha Limited" had been agreed upon as the name of the new company that formed as a result of the merger and the integrated business was carried out from 24th Ashad, 2080. The companies had signed the Memorandum of Understanding (MoU) on Bhadra 31, 2079.
The pre-merger paid-up capital of SKBBL was Rs. 1.97 Arba and that of RMDC was Rs. 1.56 Arba. The total paid-up capital reached Rs. 3.33 Arba after the merger.
Major Financial Highlights:
| Particulars (In Rs '000) | Sana Kisan Bikas Laghubitta | ||
|---|---|---|---|
| Q4 2079/80 | Q4 2078/79 | Difference | |
| Paid Up Capital | 3,331,618.20 | 1,564,413.73 | 112.96% |
| Share Premium | 18,269.71 | 18,269.71 | 0.00% |
| Retained Earnings | 1,739,318.29 | 829,136.75 | 109.77% |
| Reserves | 3,511,863.60 | 1,745,785.78 | 101.16% |
| Deposits | 1,855,586.42 | - | - |
| Borrowings | 19,297,396.20 | 16,304,371.66 | 18.36% |
| Loans & Advances to customers | 67,765.41 | 39,961.30 | 69.58% |
| Net Interest Income | 1,660,982.42 | 1,339,859.89 | 23.97% |
| Staff Expenses | 236,314.24 | 209,243.58 | 12.94% |
| Impairment Charges | 171,380.34 | 55,883.92 | 206.67% |
| Operating Profit | 1,160,860.73 | 995,258.65 | 16.64% |
| Net Profit/Loss | 814,145.11 | 696,262.25 | 16.93% |
| Distributable Profit | 1,739,318.29 | 829,136.75 | 109.77% |
| Distributable Profit per Share | 52.21 | 53.00 | -1.49% |
| Capital Adequacy (%) | 16.62 | 12.66 | 31.28% |
| NPL (%) | 0.61 | 0.68 | -10.29% |
| Cost of Fund (%) | 4.78 | 3.83 | 24.80% |
| Base Rate (%) | 5.42 | 4.56 | 18.86% |
| EPS (In Rs.) | 24.44 | 44.51 | -45.09% |
| Net Worth per Share (In Rs.) | 258.16 | 265.76 | -2.86% |
| Qtr end PE Ratio (times) | 36.79 | - | - |
| Qtr End Market Price | 899 | - | - |
