Weak Core Business Revenue and Higher Impairment Charges Result 70.83% Decline in Net Profit of Forward Microfinance; NPL at 3.81%
Fri, Feb 10, 2023 1:39 PM on Latest, Financial Analysis, Stock Market,
Forward Microfinance Laghubitta Bittiya Sanstha Limited (FOWAD) published the second-quarter report of FY 2079/2080 with decline of 70.83% in Net Profit. As per the report published by the company, the net profit decreased to Rs. 12.40 crore as compared to Rs. 42.51 crore in the corresponding quarter of the previous year.
The deposits of the company increased by 14.99% to Rs 8.43 arba. The company’s loans and advances have also decreased slightly by 0.07% to 19.76 Arba in this quarter.
The net interest income (core revenue) has decreased by 26.58% to Rs. 50.80 Crores compared to Rs. 69.19 Crores in the corresponding quarter of the previous year. Likewise, the impairment charges - provision for possible losses of Rs. 21.35 crore has also affected the profitability of company.
The paid-up capital of the company stood at Rs. 1.05 in this quarter and its reserve and surplus stood at Rs. 1.70 arba. The company also proposed 5% cash dividend (including tax) worth Rs. 4.22 Crores and a 25% bonus dividend worth Rs. 21.11 for the FY 2078/79. These bonus dividends have been capitalized by the company.
The company NPL increased to 3.81% from 2.11%.
Its annualized earnings per share (EPS) stand at Rs. 23.50. The net worth per share is Rs. 261.86. The company traded at a P/E multiple of 82.13 times.
Major Highlights:
| Particulars (In Rs '000) | Forward Microfinance Laghubitta | ||
| Q2 2079/80 | Q2 2078/79 | Difference | |
| Paid Up Capital | 1,055,563.73 | 844,450.99 | 25.00% |
| Retained Earnings | 720,486.60 | 962,106.36 | -25.11% |
| Reserves | 988,035.21 | 717,736.15 | 37.66% |
| Borrowings | 25,462.85 | ||
| Deposits from Customers | 8,431,316.11 | 7,332,243.45 | 14.99% |
| Loans and Advances to Customers | 19,765,565.11 | 19,779,658.08 | -0.07% |
| Net Interest Income | 508,037.33 | 691,924.61 | -26.58% |
| Personnel Expenses | 246,021.28 | 294,450.88 | -16.45% |
| Impairment Charges | 213,521.91 | ||
| Write Back | 11,647.68 | ||
| Operating Profit | 177,180.97 | 606,870.04 | -70.80% |
| Net Profit | 124,030.53 | 425,135.18 | -70.83% |
| Capital Adequacy (%) | 13.05 | 11.73 | 11.25% |
| NPL (%) | 3.81 | 2.11 | |
| Cost of Fund (%) | 11.34 | 8.44 | 34.36% |
| EPS (In Rs.) | 23.50 | 100.69 | -76.66% |
| Net Worth per Share (In Rs.) | 261.86 | 298.93 | -12.40% |
| Qtr end PE Ratio (times) | 82.13 | - | - |
| Qtr End Market Price | 1930.00 | - | - |
