RSDC Reports Steady Financial Performance in Q1 2080/81: Net Profit Up 6.65% Despite Decline in Net Interest Income

RSDC Laghubitta Bittiya Sanstha Limited (RSDC) recently unveiled its first quarterly report for the fiscal year 2080/81.

One of the most notable findings in the report is the company's substantial increase in net profit, with a growth rate of 6.65%. In the first quarter, RSDC's net profit reached Rs. 4.07 crores, a significant improvement compared to Rs. 3.82 crores in the corresponding period of the previous year.

The report also highlights a substantial increase in borrowings, which surged by 9.05% during the first quarter of 2080/81. RSDC's borrowings amounted to Rs. 5.90 Arba during this period.

RSDC reported a noteworthy reduction of 101.98% in impairment charges. This decline signifies improved asset quality and risk management within the organization. The company's expenses related to personnel increased by 6.32%, reaching Rs. 1.21 crores by the end of Ashwin.

The core revenue stream for microfinance companies, Net Interest Income, experienced a decline of 10.96%, amounting to Rs. 6.81 crores in the first quarter of the fiscal year 2080/81. This decline may be indicative of broader economic conditions.

Although still at a relatively low level, the Non-Performing Loan (NPL) ratio increased to 1.49% in the first quarter of the financial year 2080/81.

RSDC maintains a paid-up capital of Rs. 86.95 crores with a distributable profit of Rs. 10.13 crores to its shareholders, which puts the company in good financial standing.

The Net Worth per Share has remained almost steady at Rs. 126.93.

Note that the company has proposed a 9.0528% dividend (8.6% bonus shares worth Rs. 7.47 Crores and 0.4528% for cash dividends worth Rs. 39.35 lakhs) for the fiscal year 2079/80.

Click Here For Q1 Report:

* Figure is of Immediate Fiscal Year Ending