What Caused Kisan Laghubitta's Net Profit to Decline by 96.50% in the Second Quarter? Look at the Major Financial Highlights
Tue, Feb 7, 2023 11:38 AM on Latest, Financial Analysis, Stock Market,
Kisan Laghubitta Bittiya Sanstha Limited (KLBSL) published the second-quarter report of FY 2079/2080 with a decline by 96.50% in Net Profit. As per the report published by the company, the net profit decreased to Rs. 15.82 Lakhs as compared to Rs. 4.52 crores in the corresponding quarter of the previous year.
The borrowings of the company decreased by 7.27% to Rs. 4.74 arba which was Rs. 5.11 Arba in the corresponding quarter of the previous year. The company’s loans and advances increased by mere 0.18% to 6.74 Arba in this quarter.
The net interest income (core revenue) has decreased by -33.98% to Rs. 11.56 crores compared to Rs. 17.51 crores in the corresponding quarter of the previous year.
Despite having a write back for possible losses amounting to Rs. 4.44 Crores, KLBSL’s overall net profit decreased due to the incline in impairment charges (possible losses) by 50.14% amounting to Rs. 6.07 Crores and the operating expenses which has increased by 26.17% in this quarter. Likewise, the interest expenses in this quarter has also increased by 44.92%, all of these factors affected the profitability of Kisan Laghubitta for Q2.
The paid-up capital of the company stood at Rs. 47.13 crores in this quarter and its reserve and surplus stood at Rs. 35.22 crores which is decreased by 5.14%in this quarter.
Its annualized earnings per share (EPS) stand at Rs. 0.67. The net worth per share is Rs. 174.72. The company traded at a PE multiple of 1317.86 times.
Major Financial Highlights:
| Particulars (In Rs '000) | Kisan Laghubitta | ||
| Q2 2079/80 | Q2 2078/79 | Difference | |
| Paid Up Capital | 471,370.53 | 392,808.78 | 20.00% |
| Reserves & Surplus | 352,219.98 | 371,314.55 | -5.14% |
| Borrowings | 4,743,692.34 | 5,115,624.05 | -7.27% |
| Deposits from Customers | 1,431,463.23 | 1,279,268.44 | 11.90% |
| Loans and Advances to Customers | 6,746,423.36 | 6,734,213.03 | 0.18% |
| Interest Expenses ' | 354,186.89 | 244,395.53 | 44.92% |
| Net Interest Income | 115,616.95 | 175,132.28 | -33.98% |
| Operating Expenses | 28,478.26 | 22,571.02 | 26.17% |
| Impairment Charges (Provision) | 60,731.50 | 40,448.98 | 50.14% |
| Write Back | 44,438.51 | 6,410.13 | 593.25% |
| Operating Profit | -41,926.53 | 65,429.20 | -164.08% |
| Net Profit | 1,582.55 | 45,258.78 | -96.50% |
| Capital Adequacy (%) | 10.69 | 9.99 | 7.01% |
| NPL (%) | 4.98 | 4.73 | |
| Cost of Fund (%) | 12.55 | 9.45 | 32.80% |
| EPS (In Rs.) | 0.67 | 23.04 | -97.09% |
| Net Worth per Share (In Rs.) | 174.72 | 194.53 | -10.18% |
| Qtr end PE Ratio (times) | 1317.86 | - | - |
| Qtr End Market Price | 884.90 | - | - |
