First Microfinance Laghubitta Bittiya Sanstha Limited has published its un-audited financial report for the fourth quarter of last fiscal year, showing a massive 73.64 percent increase in its net profit.
According to report, the microfinance company made a net profit of Rs 19 crore 7 lakh in the fourth quarter. In the previous year, they had earned Rs 10 crore 98 lakh. This huge growth in profit is mainly because of improvement in their operating profit.
Even though impairment charge of company increased heavily from Rs 94 lakh 35 thousand to Rs 11 crore 86 lakh, strong growth in operating profit helped them keep the net profit high.
Talking about other key numbers, the net interest income of First Microfinance increased by 7.47 percent to reach Rs 22 crore 75 lakh. At same time, their operating income went up by 5.79 percent to Rs 22 crore 94 lakh. Their operating profit also grew by 73.05 percent to reach Rs 27 crore 28 lakh, which shows their core business is doing very well.
The company also managed to bring down its bad loans. The non-performing loan ratio decreased by 0.96 percentage points, bringing it down to 2.88 percent. During this period, the microfinance collected Rs 3 arba 76 crore in deposits and borrowings, while they disbursed Rs 4 arba 66 crore in loans. Compared to last year, both deposits and loans decreased by 23.41 percent and 23.09 percent respectively.
Distributable Profit and Key Ratios
The distributable profit of company increased by 50.76 percent to reach Rs 13 crore 62 lakh. Because of this, the annual distributable earnings per share has reached Rs 10.13, which was just Rs 6.72 in the previous year. The paid-up capital of First Microfinance is Rs 1 arba 34 crore, and they have Rs 50 crore 10 lakh in their reserve fund.
The earnings per share of the company increased by Rs 6.01 to stand at Rs 14.18. Their net worth per share is Rs 137.26. Also, cost of fund decreased from 6.22 percent to 4.75 percent, and base rate went down from 7.58 percent to 6.48 percent. The capital adequacy ratio of microfinance also improved significantly, going up from 25.59 percent to 35.43 percent.
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butable Profit
