With a Decline In Core Business Revenue, Net Profit Decreases by 52.81% For Summit Laghubitta In Q1; Company Recently Signed Merger Deal With National Microfinance
Mon, Nov 7, 2022 11:56 AM on Latest, Financial Analysis, Stock Market,
Summit Laghubitta Bittiya Sanstha Limited (SMFDB) published its first-quarter report of FY 2079/2080 with a decrease in Net Profit by 52.81%. As per the report published by the company, the net profit decreased to Rs. 1.85 crores as compared to Rs. 3.92 crores in the corresponding quarter of the previous year.
The borrowings of the company increased by 71.85% to Rs. 3.72 Arba which was Rs. 2.17 Arba in the corresponding quarter of the previous year. The company’s loans and advances have also increased by a margin of 19.20% to 5.89 Arba in this quarter.
The net interest income (core revenue) has however decreased by 9.11% to Rs. 7.80 crores compared to Rs. 8.58 crores in the corresponding quarter of the previous year.
The paid-up capital of the company increased to Rs. 49.40 crores in this quarter and its reserve and surplus stood at Rs. 27.17 crores which is an increase of 3.71% in this quarter.
Its annualized earnings per share (EPS) stand at Rs. 15.01. The net worth per share is Rs. 155.02 and the company traded at a P/E multiple of 50.88 times.
Note: Recently, National Microfinance signed a merger agreement with Summit Laghubitta at a swap ratio of 100:82, i.e. for every 100 units of Summit’s shares, the shareholders will get 82-unit shares of National.
| Particulars (In Rs '000) | Summit Laghubitta Bittiya Sanstha | ||
|---|---|---|---|
| Q1 2079/80 | Q1 2078/79 | Difference | |
| Paid Up Capital | 494,000 | 394,300 | 25.29% |
| Reserve & Surplus | 271,799 | 262,081 | 3.71% |
| Deposits | 1,367,076 | 1,110,594 | 23.09% |
| Borrowings | 3,729,339 | 2,170,106 | 71.85% |
| Loans & Advances | 5,896,700 | 4,946,962 | 19.20% |
| Net Interest Income | 78,062 | 85,884 | -9.11% |
| Provision for possible losses | 16,563 | 16,499 | 0.38% |
| Operating Profit | 29,433 | 62,374 | -52.81% |
| Net Profit | 18,543 | 39,296 | -52.81% |
| Capital Adequacy (%) | 12.19 | 12.30 | -0.89% |
| NPL (%) | 2.25 | 2.56 | -12.11% |
| Annualized EPS (In Rs.) | 15.01 | 39.86 | -62.34% |
| Net Worth per Share (In Rs.) | 155.02 | 166.47 | -6.88% |
| PE Ratio (times) | 50.88 | - | - |
| Qtr End Market Price | 764 | ||
