Aatmanirbhar Laghubitta’s Stellar Performance: Q4 Results Show Impressive Growth
Aatmanirbhar Laghubitta has just released its unaudited financial statements for the fourth quarter of the last fiscal year, and the results are nothing short of impressive! The microfinance institution (MFI) has seen a remarkable increase in net profit, signaling strong performance and strategic financial management.
The report reveals a staggering 218.64% surge in net profit, reaching an impressive Rs 4.47 crore. This is a significant leap from the Rs 1.40 crore recorded in the same period the previous year. This remarkable turnaround highlights the company’s financial strength and its ability to navigate the dynamic microfinance landscape.
Key Drivers of Profit Growth:
Several factors contributed to this substantial profit increase. A notable shift from operational losses to profitability played a pivotal role. Furthermore, a significant reduction in impairment charges bolstered the company’s bottom line. These factors demonstrate the effectiveness of Aatmanirbhar Laghubitta’s risk management strategies and operational efficiency.
Financial Highlights:
- Net Interest Income: The microfinance‘s net interest income grew by 9.66%, reaching Rs 13.57 crore. This indicates a healthy expansion in the institution’s core lending activities.
- Impairment Charges: A significant drop in impairment charges, from Rs 17.65 crore to Rs 4.04 crore, further boosted profitability. This reduction reflects improved asset quality and effective loan recovery measures.
- Non-Performing Loan (NPL) Ratio: The MFI also witnessed a positive trend in its bad debt ratio, which decreased by 0.42 percentage points to 12.80%. This improvement underscores the effectiveness of the credit risk management practices.
Operational Performance:
During the fourth quarter, Aatmanirbhar Laghubitta mobilized Rs 98 crore in deposits and borrowings while disbursing loans worth Rs 1.55 billion. However, the total borrowing decreased by 32.70%, reaching Rs 9.97 lakh.
Key Metrics:
- Paid-up Capital: The company’s paid-up capital stands at Rs 7.83 crore.
- Reserve Fund: The reserve fund is robust, with Rs 22.31 crore.
- Earnings Per Share (EPS): A significant increase in earnings per share by Rs 36.61 has resulted in EPS of Rs 57.07. This is a strong indicator of profitability and shareholder value.
- Net Worth Per Share: The net worth per share is at Rs 384.82.
Investment Outlook:
Investors and financial analysts are likely to view these results favorably. The strong profit growth, combined with improved asset quality and operational efficiency, positions Aatmanirbhar Laghubitta as a compelling investment opportunity. This announcement is a sign of growth in the Nepalese financial market.
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