RSDC Laghubitta's Net Profit Declines by 35.99% in Q1 FY 2081/82 Due to Falling Core Revenue and Rising Impairment Charges
Thu, Oct 24, 2024 7:26 AM on Financial Analysis, Company Analysis, Latest,
RSDC Laghubitta Bittiya Sanstha (RSDC) has released its unaudited financial results for the first quarter of FY 2081/82, highlighting a significant decline in its net profit. The company reported a net profit of Rs 2.6 crores, which marks a 35.99% decrease compared to Rs 4.07 crores in the same period of FY 2080/81. This decline is attributed to a drop in operating profit, which fell by 35.86%, now standing at Rs 3.72 crores from Rs 5.81 crores in the previous year.
The company’s net interest income also saw a decline of 5.92%, totaling Rs 6.40 crores in Q1 FY 2081/82 compared to Rs 6.81 crores in Q1 FY 2080/81. Meanwhile, personnel expenses decreased by 17.46%, reducing from Rs 1.214 crores in the previous year to Rs 1.02 crores in the current quarter. However, impairment charges for loans and advances increased significantly, amounting to Rs 1.77 crores.
In terms of financial health, non-performing loans (NPL) surged to 2.57%, marking a substantial 72.48% increase compared to 1.49% in Q1 FY 2080/81. On the positive side, net worth per share rose slightly by 2.13% to Rs 130.45, while the capital adequacy ratio improved to 17.66%, up by 5.50% from the previous year.
Other key metrics for the quarter include the company’s earnings per share (EPS) dropping from Rs 17.27 to Rs 11.05, reflecting the reduction in net profit. At the end of the quarter, the price-to-earnings (PE) ratio stood at 67.75 times, with the quarter-end market price recorded at Rs 749.
* Figures are of Immediate Previous Year Quarter Ending
Major Highlights:
| Particulars (In Rs '000) | RSDC Laghubitta | ||
|---|---|---|---|
| Q1 2081/82 | Q1 2080/81 | Difference | |
| Paid Up Capital | 944,351.07 | 944,351.07* | 0.00% |
| Retained Earnings | 111,829.40 | 97,328.89* | 14.90% |
| Reserve & Surplus | 175,752.43 | 164,530.17* | 6.82% |
| Borrowings | 5,708,103.51 | 5,359,331.02* | 6.51% |
| Loans & Advances to MFIs & Cooperatives | 6,576,580.75 | 6,306,102.10* | 4.29% |
| Net Interest Income | 64,081.50 | 68,116.75 | -5.92% |
| Personnel Expenses | 10,021.81 | 12,142.03 | -17.46% |
| Impairment Charges/Reversal for loans and Advances | 17,714.03 | -331.25 | - |
| Operating Profit | 37,283.99 | 58,131.73 | -35.86% |
| Net Profit | 26,098.79 | 40,774.29 | -35.99% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 111,829.39 | ||
| Capital Adequacy (%) | 17.66 | 16.74 | 5.50% |
| NPL (%) | 2.57 | 1.49 | 72.48% |
| Cost of Fund (%) | 8.34 | 11.48 | -27.35% |
| EPS (In Rs.) | 11.05 | 17.27 | -35.99% |
| Net Worth per Share (In Rs.) | 130.45 | 127.73 | 2.13% |
| Qtr end PE Ratio (times) | 67.75 | - | - |
| Qtr End Market Price | 749 | - | - |
