RMDC Laghubitta Core Business Revenue Increases by 20.46% in Q2; Company to Merge With Sana Kisan Bikas Laghubitta to Form a Capital Base of Rs.7 Arba
Sun, Feb 5, 2023 8:16 AM on Financial Analysis, Stock Market, Latest,
RMDC Laghubitta Bittiya Sanstha Limited (RMDC) has published its second-quarter report for the FY 2079/2080 with a rise in Net Profit by 22.58%. RMDC's net profit has increased from Rs. 16.85 crores in the second quarter of FY 2078/2079 to Rs. 20.65 crores in the second quarter of FY 2079/2080.
In the same quarter, microfinance has Rs 11.34 crores as distributable profit after PL Appropriation and Regulatory Adjustments. For the Fiscal year 2078/79, the company proposed 26% bonus shares worth Rs 32.26 crores and 1.3684% cash dividend (including tax) worth Rs 1.69 crore. These bonus dividends are yet to be capitalized by the company.
Microfinance borrowings decreased by 8.81% in this quarter, whereas loans and advances to MFIs and Cooperative decreased by 2.62% to Rs. 11.38 arba till the second quarter.
RMDC's Net Interest Income- NII (core business income) has increased by 20.46% to Rs. 33.41 crore compared to the corresponding quarter of the previous year.
The personnel (operating) expenses of the company has increased by 22.24% to stand at Rs. 5.21 Crores. On the other hand, the impairment charges have decreased by 96.94% to Rs. 1.49 lakhs which have also resulted in the incline in the profitability of the company for this quarter.
The Laghubitta company's paid-up capital stands at Rs. 1.24 Arba with Rs. 2.29 Arba in Reserve and surplus. The Non-performing loan (NPL) is 0.16%.
Similarly, the Cost of funds stands at 11.46% and Capital Adequacy Rate is at 26.10%.
The annualized earnings per share (EPS) stood at Rs.33.29 and Net worth per share stood at Rs. 285.04. The company traded at a P/E multiple of 33.20 times.
Also, Nepal Rastra Bank (NRB) has granted in-principle consent to the merger between Sana Kisan Bikas Laghubitta (SKBBL) and RMDC Laghubitta. The merger agreement between the companies was signed on Bhadra 31, 2079. The share swap ratio between Sana Kisan and RMDC is also set at 100:87. As a result, investors who now own 100 shares of RMDC Microfinance would receive 87 shares of the merged company.
Major Highlights:
| Particulars (In Rs '000) | RMDC Laghubitta | ||
| Q2 2079/80 | Q2 2078/79 | Difference | |
| Paid Up Capital | 1,241,066.33 | 1,241,066.33 | 0.00% |
| Retained Earnings | 1,088,619.73 | 975,218.98 | 11.63% |
| Reserves | 1,207,879.77 | 1,116,197.94 | 8.21% |
| Borrowings | 229,357.93 | 251,503.12 | -8.81% |
| Loans & Advances to MFIs & Cooperatives | 11,383,422.67 | 11,689,771.34 | -2.62% |
| Net Interest Income | 334,180.06 | 277,422.99 | 20.46% |
| Personnel Expenses | 52,165.75 | 42,676.54 | 22.24% |
| Impairment Charges | 149.50 | 4,886.86 | -96.94% |
| Operating Profit | 295,245.15 | 234,955.05 | 25.66% |
| Net Profit | 206,558.86 | 168,504.75 | 22.58% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments (4th Quarter) | 113,400.76 | ||
| Capital Adequacy (%) | 26.10 | 22.50 | 16.00% |
| NPL (%) | 0.16 | 0.05 | |
| Cost of Fund (%) | 11.46 | 7.65 | 49.80% |
| Annualized EPS (In Rs.) | 33.29 | 27.15 | 22.58% |
| Net Worth per Share (In Rs.) | 285.04 | 268.52 | 6.15% |
| Qtr end PE Ratio (times) | 33.20 | - | - |
| Qtr End Market Price | 1105 | - | - |
