RSDC Laghubitta Bittiya Sanstha (RSDC) has just released its third-quarter report for the fiscal year 2080/2081, showcasing an impressive surge in Net Profit by 30.34%. This notable increase reflects RSDC’s adaptability and strategic prowess amidst the ever-changing financial landscape.
According to the report, the net profit surged to Rs. 11.21 crore, a substantial improvement from Rs. 8.60 crore recorded in the corresponding quarter of the previous fiscal year. This remarkable performance highlights RSDC’s steadfast dedication to delivering value to its stakeholders, even in the face of economic uncertainties.
In the third quarter, RSDC saw distributable profit after PL Appropriation and Regulatory Adjustments amounting to Rs. 8.61 crores, showcasing sound financial management practices.
Despite encountering fiscal challenges, RSDC successfully reduced its borrowings by 4.61% to Rs. 5.65 Arba, down from Rs. 5.93 Arba in the previous fiscal year. Additionally, loans and advances to co-operatives decreased by 1.80% to Rs. 6.59 Arba during this period.
However, the quarter also witnessed a decline in net interest income (core revenue) by 13.48% to Rs. 18.51 crore, compared to Rs. 21.40 crore in the corresponding quarter of the previous year.
A notable concern highlighted in the report is the increase in non-performing loans (NPL) to 2.99% from 1.37%. Despite this challenge, RSDC remains committed to implementing effective risk management strategies to mitigate potential losses.
During this quarter, the company’s paid-up capital stood at Rs. 94.43 crores, with reserve and surplus totaling Rs. 23.31 crores, indicating a solid financial base.
With an annualized earnings per share (EPS) of Rs. 15.83 and a net worth per share of Rs. 124.69, RSDC continues to prioritize delivering sustainable returns to its shareholders. The company’s P/E multiple of 38.10 times reflects investor confidence in its growth prospects.
In summary, RSDC’s third-quarter performance underscores its resilience and adaptability in navigating the complexities of the financial landscape, establishing itself as a prominent player in the microfinance sector.