Rise in Interest Expense Affects Profitability of Nerude Laghubitta for Q1; Core Business Revenue Decreases by 36.50%, NPL at 4.93%
Sun, Nov 13, 2022 10:38 AM on Latest, Financial Analysis, Stock Market,
Nerude Laghubitta Bittiya Sanstha Limited (NLBBL) published the first-quarter report of FY 2079/2080 with a decline in net profit by 64.15%. As per the report published by the company, the net profit decreased to Rs. 1.70 crores as compared to Rs. 4.75 crore in the corresponding quarter of the previous year.
The borrowings of the company increased by 20.45% to Rs. 5.24 Arba which was Rs. 4.35 Arba in the corresponding quarter of the previous year. The deposits of the company increased by 19.27% to Rs 3.28 arba. The company’s loans and advances have also increased by a 18.90% to 10.22 Arba in this quarter.
The net interest income (core revenue) has decreased by 36.50% to Rs. 10.91 crores compared to Rs. 17.19 crores in the corresponding quarter of the previous year.
The interest expenses has increased by 74.48% which has also affected the profitability of the company for this period.
The provision of possible losses stands at Rs 5.78 crores whereas at the same time company is able to write back Rs 1.70 crores.
The paid-up capital of the company stood at Rs. 60 crores in this quarter and its reserve and surplus stood at Rs. 81.87 crores.
The company NPL is at a higher level of 4.93%.
Its earnings per share (EPS) stand at Rs. 11.37. The net worth per share is Rs. 236.46. The company traded at a P/E multiple of 74.24 times.
Major Highlights:
| Particulars (In Rs '000) | Nerude Laghubitta Bittiya Sanstha | ||
| Q1 2079/80 | Q1 2078/79 | Difference | |
| Paid Up Capital | 600,000.00 | 493,877.57 | 21.49% |
| Reserve & Surplus | 818,781.27 | 710,542.66 | 15.23% |
| Borrowings | 5,243,989.55 | 4,353,536.67 | 20.45% |
| Deposits | 3,282,929.68 | 2,752,406.99 | 19.27% |
| Loans & Advances | 10,223,433.93 | 8,598,599.58 | 18.90% |
| Interest Expenses | 238,855.73 | 136,893.90 | 74.48% |
| Net Interest Income | 109,196.21 | 171,961.18 | -36.50% |
| Staff Expenses | 105,808.29 | 112,421.76 | -5.88% |
| Provision for possible losses | 57,861.70 | 80,158.03 | - |
| Operating Profit | -16,995.04 | 23,211.82 | |
| Write Back | 44,063.68 | 52,286.92 | - |
| Net Profit | 17,053.24 | 47,564.21 | -64.15% |
| Capital Adequacy (%) | 10.82 | 10.82 | 0.00% |
| NPL (%) | 4.93 | 4.68 | - |
| Cost of Fund (%) | 10.43 | 7.11 | 46.69% |
| EPS (In Rs.) | 11.37 | 38.52 | -70.49% |
| Net Worth per Share (In Rs.) | 236.46 | 243.87 | -3.04% |
| Qtr end PE Ratio (times) | 74.24 | - | - |
| Qtr End Market Price | 844 | - | - |
