Aarambha Chautari Laghubitta’s Impressive Financial Performance: Q4 Report Analysis
Aarambha Chautari Laghubitta, a leading microfinance institution in Nepal, has released its unaudited financial statements for the fourth quarter of the last fiscal year. The Q4 report reveals remarkable growth, with a staggering 13,785% increase in net profit, reaching NPR 94.4 million. This significant jump is a clear indicator of the company’s strong performance and efficient financial management.
This remarkable profit surge is primarily attributed to a substantial rise in net interest income and a significant reversal of impairment charges amounting to NPR 23.8 million. This highlights the microfinance company’s ability to manage financial risk effectively.
Digging deeper into the numbers, Aarambha Chautari Laghubitta’s net interest income witnessed a healthy growth of 31.89%, reaching NPR 370.2 million. Furthermore, its operating income also saw a positive trend, growing by 31.92% to NPR 453.8 million. These figures demonstrate the companyтАЩs consistent expansion and revenue generation capabilities within the Nepalese microfinance sector.
Another positive aspect of the Q4 report is the reduction in non-performing loans (NPLs). The NPL ratio decreased by 2.08 percentage points, settling at 2.13%. This improvement indicates improved asset quality and effective loan management strategies, essential for any financial institution.
During the review period, the microfinance company mobilized NPR 5.25 billion in deposits and borrowings, and disbursed NPR 5.31 billion in loans. The financial highlights show NPR 3.35 billion in borrowings and NPR 1.89 billion in deposit collection.
Looking at the capital structure, the company has a paid-up capital of NPR 367.1 million. The distributable profit stands at NPR 52.1 million, and the reserve fund has reached NPR 206.2 million. Most notably, the earnings per share (EPS) has surged by NPR 25.53 to reach NPR 25.72. Moreover, the net worth per share is NPR 156.18, reflecting a strong financial position of the company.
Key financial ratios provide further insights into the companyтАЩs financial health:
- Price-to-Earnings (P/E) Ratio: 42.28
- Capital Adequacy Ratio: 8.68%
- Cost of Funds: 7.39%
- Base Rate: 13.40%
- Interest Rate Margin: 7.61%
These financial indicators suggest a stable and well-managed financial institution, poised for continued growth in the microfinance market of Nepal. This Q4 performance demonstrates Aarambha Chautari Laghubitta’s commitment to sustainable financial growth and value creation for its shareholders. Investors and financial analysts will undoubtedly be watching this microfinance company closely.
