Infinity Laghubitta’s Profit Soars: A Deep Dive into the Latest Financial Results
Infinity Laghubitta Bittiya Sanstha Limited has just released its unaudited financial statements for the fourth quarter of the last fiscal year. The financial report reveals some exciting developments for investors and those watching the microfinance sector. The most striking piece of news? The microfinance company witnessed a massive surge in profitability.
According to the financial results, Infinity Laghubitta’s net profit skyrocketed by a remarkable 104.71%, reaching NPR 93.8 million. This is a significant jump from the NPR 45.8 million reported in the same period last year. This impressive growth signals strong financial performance and effective business strategies.
This substantial increase in profit is largely attributed to a notable rise in net interest income and other operating income. This shows the effectiveness of the company’s core financial services and their ability to generate revenue.
Breaking down the numbers, we see that Infinity Laghubitta’s net interest income increased by 39.64%, reaching NPR 405 million in the fourth quarter. Simultaneously, operating income grew by 40.93%, reaching NPR 477.8 million. While impairment charges saw an increase, rising from NPR 29 million to NPR 42.1 million, the overall impact of these factors on the overall financial position is still positive.
Another positive indicator is the reduction in the microfinance company’s non-performing loan (NPL) ratio. The NPL ratio decreased by 2.76 percentage points, settling at 7.43%. This improvement highlights the company’s success in loan management and risk mitigation. This decrease should be a good sign for potential investors.
During the review period, the microfinance institution collected NPR 1.39 billion in deposits and borrowed NPR 3.97 billion, leading to a total of NPR 5.83 billion in loans and advances. These lending activities are crucial for economic growth and providing financial access to communities.
Looking at the capital structure, Infinity Laghubitta has a paid-up capital of NPR 497.4 million. The company’s distributable profit stands at NPR 80 million, and it holds NPR 281.8 million in the reserve fund. These figures indicate a stable financial base for future growth.
Earnings per share (EPS) also saw a significant boost, increasing by NPR 9.64 to reach NPR 18.85. The net worth per share is reported at NPR 156.65. These are essential metrics that are a good gauge of the microfinance company’s performance.
Analyzing other key financial ratios, the price-to-earnings (P/E) ratio stands at 46.16, and the capital adequacy ratio is at 11.28%. The cost of funds is 7.41%, while the base rate is at 13.23%. The interest rate spread is recorded at 7.59%. These key financial indicators offer further insights into the company’s financial health and its position in the market.
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