Aatmanirbhar Laghubitta Soars: Microfinance Institution Sees Massive Profit Surge in Fiscal Year 2080/81 Q4!
Aatmanirbhar Laghubitta Bittiya Sanstha Limited, a leading microfinance institution in the region, has reported a phenomenal turnaround in its financial performance for the fourth quarter (Q4) of fiscal year 2080/81. The company’s net profit has skyrocketed, showcasing a remarkable 218.64% increase! This impressive growth reflects the company’s resilience and strategic focus on financial stability and sustainable growth within the microfinance sector.
The latest financial results reveal that Aatmanirbhar Laghubitta achieved a net profit of Rs. 4.47 crore in Q4. This is a significant improvement compared to the Rs. 1.40 crore reported during the same period last year. This remarkable profitability is primarily attributed to a strong recovery from prior operating losses and, more importantly, a substantial decrease in impairment charges. This is a testament to the company’s improved risk management strategies and overall financial health.
Key Financial Highlights:
- Net Profit: A 218.64% increase, reaching Rs. 4.47 crore.
- Net Interest Income: Rose by 9.66% to Rs. 13.57 crore.
- Impairment Charges: A sharp decline from Rs. 17.65 crore to Rs. 4.04 crore, significantly contributing to the profit recovery.
- Non-Performing Loan (NPL) Ratio: Improved, declining by 0.42 percentage points to 12.80%, indicating better loan portfolio management.
Loan Disbursal and Borrowing Activities:
During Q4, Aatmanirbhar Laghubitta demonstrated its commitment to financial inclusion by disbursing loans worth Rs. 1.55 arba. The company also managed to collect deposits and borrowings totaling Rs. 98 crore. The company’s borrowing volume declined by 32.70% to Rs. 9.97 crore, which is a healthy sign for the company.
Strong Capital Base and Earnings:
Aatmanirbhar Laghubitta maintains a robust capital base with a paid-up capital of Rs. 7.83 crore and a reserve fund of Rs. 22.31 crore. The company also saw a considerable increase in its earnings per share (EPS), which surged by Rs. 36.61 to reach Rs. 57.07. Furthermore, the net worth per share reached Rs. 384.82, reflecting a strong and healthy financial standing.
Market Performance and Financial Analysis:
This significant profit growth highlights the effectiveness of Aatmanirbhar Laghubitta’s business strategies and its strong position in the microfinance market. The company’s ability to reduce impairment charges and maintain a stable NPL ratio indicates strong asset quality and efficient credit risk management. This success story underscores the potential of the microfinance sector in driving economic growth and financial inclusion in Nepal. Investors and stakeholders should take note of this significant financial performance. This positive financial report should attract more investment opportunities for the microfinance sector as a whole.
