Microfinance Financial Performance Update: आरम्भ, कालिका, and हिमालयन लघुवित्त Financial Results
Microfinance institutions (MFIs) play a crucial role in Nepal’s financial landscape, providing small loans and financial services to underserved communities. Recently, several microfinance companies have released their financial results for the past fiscal year. This financial analysis dives into the performance of three key players: आरम्भ लघुवित्त वित्तीय संस्था लिमिटेड (Aarambha Laghubitta), कालिका लघुवित्त वित्तीय संस्था लिमिटेड (Kalika Laghubitta), and हिमालयन लघुवित्त वित्तीय संस्था लिमिटेड (Himalayan Laghubitta). We’ll explore their financial statements, focusing on profitability, revenue, and other key financial metrics.
आरम्भ लघुवित्त वित्तीय संस्था लिमिटेड (Aarambha Laghubitta)
आरम्भ has demonstrated impressive growth. The company reported a remarkable net profit of NPR 94.4 million for the year, a staggering increase of approximately 13,785% compared to the previous year’s NPR 6.8 million. This significant improvement highlights Aarambha’s strong performance and its ability to generate profits in the microfinance sector.
The company’s revenue has also seen a boost. Net interest income grew from NPR 280.7 million to NPR 370.2 million. This increase in interest income is a positive sign for Aarambha’s financial health. Furthermore, the company reversed NPR 23.8 million in impairment charges. These factors contributed to the strong net profit.
With a paid-up capital of NPR 367.14 million and NPR 154.1 million in the reserve fund, Aarambha shows a solid financial foundation. The earnings per share (EPS) reached NPR 25.72, and the net worth per share stood at NPR 156.18. The non-performing loan (NPL) ratio improved to 2.13% from the previous year’s 4.21%. This indicates improved asset quality and effective risk management. This makes आरम्भ an interesting company to watch.
कालिका लघुवित्त वित्तीय संस्था लिमिटेड (Kalika Laghubitta)
कालिका लघुवित्त also showcased a healthy financial performance. The company achieved a net profit of NPR 100.6 million for the year, reflecting a 36.42% increase compared to the previous year’s NPR 79.2 million. This increase demonstrates Kalika’s sustained profitability.
The company’s net interest income increased from NPR 253.5 million to NPR 381 million, showcasing growth in its core lending business. This growth in interest income is a primary driver of profitability within the microfinance industry.
Kalika has a paid-up capital of NPR 407.69 million and NPR 288.3 million in its reserve fund, indicating a sound financial position. Its earnings per share reached NPR 26.51, and its net worth per share stood at NPR 186.44. The NPL ratio was reported at 4.67%. The company has a dividend distribution capacity of 15.19%. Kalika offers an interesting investment opportunity.
हिमालयन लघुवित्त वित्तीय संस्था लिमिटेड (Himalayan Laghubitta)
हिमालयन लघुवित्त recorded a net profit of NPR 91.7 million for the year, a significant turnaround from the previous year’s loss. This turnaround signifies improved operational efficiency and financial performance.
Himalayan’s net interest income increased from NPR 222.7 million to NPR 353 million. This growth in interest income is the foundation for sustainable profitability in microfinance. Additionally, the company reversed NPR 3 million in impairment charges.
Himalayan has a paid-up capital of NPR 319.82 million and NPR 119.2 million in its reserve fund. The company’s earnings per share stood at NPR 28.70, and its net worth per share was NPR 148.16. The NPL ratio was 5.33%. The company has a dividend distribution capacity of 19.76%. This makes हिमालयन a good choice for potential microfinance investors.
Conclusion: Microfinance Sector Outlook
Overall, the recent financial results from these microfinance institutions paint a positive picture of the microfinance sector in Nepal. The increase in net profits, rising interest income, and improved asset quality demonstrate the sector’s resilience and potential for growth. However, it’s important to continue to monitor NPL ratios and other financial metrics to assess the long-term sustainability of these microfinance companies. Investing in microfinance can be an opportunity to grow your wealth. For investors, due diligence and understanding the risks and rewards of the microfinance market are crucial.
