RMDC Laghubitta Reports Satisfactory Growth in Profitability for Q3; Company to Merge With Sana Kisan Bikas Laghubitta at a Swap Ratio of 100:87
Mon, May 8, 2023 11:28 AM on Latest, Financial Analysis, Stock Market,
RMDC Laghubitta Bittiya Sanstha Limited (RMDC) has published its third-quarter report for the FY 2079/2080 with a rise in Net Profit by mere 3.20%. RMDC's net profit has increased from Rs. 26.59 crores in the third quarter of FY 2078/2079 to Rs. 27.44 crores in the third quarter of FY 2079/2080.
Microfinance borrowings decreased by 8.81% in this quarter, whereas loans and advances to MFIs and Cooperative decreased by 3.57% to Rs. 11.27 arba till the third quarter.
RMDC's Net Interest Income- NII (core business income) has increased by 3.54% to Rs. 46.29 crore compared to the corresponding quarter of the previous year.
The personnel (operating) expenses of the company has increased by 3.07% to stand at Rs. 7.10 Crores. On the other hand, the impairment charges have increased by 408.07% to Rs. 1.71 crores which have also resulted in lower incline in the profitability of the company for this quarter.
The Laghubitta company's paid-up capital stands at Rs. 1.56 Arba with Rs. 2.02 Arba in Reserve and surplus. The Non-performing loan (NPL) is 0.74%.
Similarly, the Cost of funds stands at 12.36% and Capital Adequacy Rate is at 22.16%.
The annualized earnings per share (EPS) stood at Rs.23.40 and Net worth per share stood at Rs. 229.41. The company traded at a P/E multiple of 29.65 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 | ||
|---|---|---|---|
| Q3 2079/80 | Q3 2078/79 | Difference | |
| Paid Up Capital | 1,563,743.57 | 1,241,066.33 | 26.00% |
| Retained Earnings | 814,014.64 | 975,218.98 | -16.53% |
| Reserves | 1,209,647.07 | 1,116,197.94 | 8.37% |
| Borrowings | 229,357.93 | 251,503.12 | -8.81% |
| Loans & Advances to MFIs & Cooperatives | 11,272,020.29 | 11,689,771.34 | -3.57% |
| Net Interest Income | 462,903.79 | 447,096.49 | 3.54% |
| Personnel Expenses | 71,074.86 | 68,958.34 | 3.07% |
| Impairment Charges | 17,104.72 | 3,366.60 | 408.07% |
| Operating Profit | 392,069.68 | 379,761.24 | 3.24% |
| Net Profit | 274,469.82 | 265,966.66 | 3.20% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments (4th Quarter) | 814,014.64 | 964,360.86 | -15.59% |
| Capital Adequacy (%) | 22.16 | 23.44 | -5.46% |
| NPL (%) | 0.74 | 0.06 | |
| Cost of Fund (%) | 12.36 | 9.23 | 33.91% |
| EPS (In Rs.) | 23.40 | 28.57 | -18.10% |
| Net Worth per Share (In Rs.) | 229.41 | 268.52 | -14.56% |
| Qtr end PE Ratio (times) | 29.65 | - | - |
| Qtr End Market Price | 694 | - | - |
