Kalika Laghubitta’s Impressive Q4 Results: Profit Growth and Key Financial Indicators
Kalika Laghubitta, a leading microfinance institution in Nepal, has just released its fourth quarter results, and the numbers are looking very positive! The financial performance showcases significant profit growth and strong operational efficiency, making it a noteworthy player in the Nepalese financial market.
Profit Surges Significantly
The unaudited financial statements reveal a remarkable increase in net profit. Kalika Laghubitta’s net profit has jumped by an impressive 36.42%, reaching NPR 10.80 crore. This is a significant improvement from the NPR 7.92 crore reported in the same period last year. This surge in profits is primarily driven by a substantial rise in interest income and operating profit, reflecting the microfinance company’s effective financial management.
Key Drivers of Growth: Interest Income and Operational Efficiency
Kalika Laghubitta’s net interest income witnessed a substantial 50.29% increase, reaching NPR 38.10 crore. This growth underscores the microfinance’s ability to effectively manage its loan portfolio and generate strong interest earnings. Furthermore, operating income also experienced a notable surge, increasing by 54.98% to reach NPR 43.79 crore. The operating profit, a key indicator of financial performance, increased by an impressive 95.89%, reaching NPR 15.42 crore. While the impairment charge also saw a slight increase, this has been outweighed by the overall profitability of the financial institution.
Loan Portfolio and Deposits
During the review period, Kalika Laghubitta managed to gather deposits and borrowings of NPR 4.43 billion, and extended loans of NPR 4.84 billion, demonstrating its role in the microfinance sector within Nepal.
Financial Highlights
- Earnings per Share (EPS): The earnings per share (EPS) has increased by NPR 5.23, reaching NPR 26.51. This signifies the growing profitability of the company and its ability to generate returns for shareholders.
- Net Worth: The net worth per share stands at NPR 186.44, showcasing a robust financial position.
- Bad Debt Ratio: The non-performing loan (NPL) ratio, an important measure of asset quality, has increased by 0.88 percentage points to 4.67%.
- Paid-up Capital and Reserves: The paid-up capital is NPR 40.76 crore, with distributable profit of NPR 6.19 crore and a reserve fund of NPR 35.24 crore.
- Price-Earnings (P/E) Ratio: The price-to-earnings ratio is 39.96, reflecting the market’s valuation of the company.
- Capital Adequacy Ratio: The Capital Adequacy Ratio is reported to be 11.08%.
- Cost of Funds: The cost of funds is at 6.49%.
- Base Rate: The base rate is 13.01%.
- Interest Rate Spread: The interest rate spread is 8.51%.
Looking Ahead: Investment Opportunities in Microfinance
Kalika Laghubitta’s strong financial results highlight the growing potential of the microfinance sector in Nepal. With robust profitability and efficient financial management, Kalika Laghubitta remains a compelling option for investors looking for investment opportunities in the Nepalese stock market. Keep an eye on the stock market and financial news for the latest updates and insights on microfinance stocks.
