Sana Kisan Bikas Laghubitta Core Business Revenue Increases by 37.44% in Q2; Company to Merge With RMDC Laghubitta
Wed, Feb 1, 2023 9:51 AM on Financial Analysis, Stock Market, Latest,
Sana Kisan Bikas Laghubitta Bittiya Sastha Limited (SKBBL) has published its second-quarter report for the FY 2079/2080 with an increment in Net Profit by 34.33%. SKBBL's net profit has increased from Rs. 32.38 Crore in the second quarter of FY 2078/2079 to Rs. 43.49 Crore in the second quarter of FY 2079/2080.
In the same quarter, the company has Rs 26.96 crores as distributable profit after PL Appropriation and Regulatory Adjustments. For the Fiscal Year 2078/79, 26% bonus shares worth Rs. 40.67 crores and 1.368% cash dividend (for tax purposes) worth slightly over Rs. 2.14 crores have been proposed by the company. These bonus dividends are yet to be capitalized as the book closure dates for these dividends have not elapsed.
Microfinance’s borrowings increased by 5.59% to Rs. 17.21 arba whereas loans and advances to MFIs and Cooperative increased by 5.51% to Rs. 30.82 arba till the second quarter.
SKBBL's Net Interest Income (core business income) has increased by 37.44% to Rs. 84.98 Crores compared to the corresponding quarter of the previous year.
The company’s paid-up capital stands at Rs. 1.56 Arba with Rs. 3.04 Arba in Reserve and surplus. The Non-performing loan (NPL) is at 1.37%.
The annualized earnings per share (EPS) stood at Rs. 55.61 and the Net worth per share stood at Rs. 294.49. The company traded at a P/E multiple of 22.71 times.
Also, Nepal Rastra Bank (NRB) has granted in-principle consent to the merger between Sana Kisan Bikas Laghubitta and RMDC Laghubitta Bittiya Sanstha Limited (RMDC). 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.
| Particulars (In Rs '000) | Sana Kisan Bikas Laghubitta | ||
| Q2 2079/80 | Q2 2078/79 | Difference | |
| Paid Up Capital | 1,564,413.73 | 1,564,413.73 | 0.00% |
| Share Premium | 18,269.71 | 18,269.71 | 0.00% |
| Retained Earnings | 1,590,265.57 | 829,136.75 | 91.80% |
| Reserves | 1,434,082.80 | 1,745,785.78 | -17.85% |
| Borrowings | 17,215,038.66 | 16,304,371.66 | 5.59% |
| Loans & Advances to MFIs & Cooperatives | 30,822,228.01 | 29,311,585.86 | 5.15% |
| Net Interest Income | 849,870.89 | 618,364.96 | 37.44% |
| Personnel Expenses | 111,490.99 | 86,172.48 | 29.38% |
| Impairment Charges | 82,811.89 | 45,742.33 | 81.04% |
| Operating Profit | 620,311.73 | 461,576.94 | 34.39% |
| Net Profit | 434,964.02 | 323,802.01 | 34.33% |
| Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments | 269,677.69 | ||
| Capital Adequacy (%) | 13.82 | 12.96 | 6.64% |
| NPL (%) | 1.37 | 0.60 | 128.33% |
| Cost of Fund (%) | 4.35 | 3.38 | 28.70% |
| Annualized EPS (In Rs.) | 55.61 | 41.40 | 34.33% |
| Net Worth per Share (In Rs.) | 294.49 | 265.76 | 10.81% |
| Qtr end PE Ratio (times) | 22.71 | - | - |
| Qtr End Market Price | 1263 | - | - |
