Asha Laghubitta hits positive circuit upto 248%

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Rabindra Bhattrai
Rabindra Bhattarai is a respected finance expert, widely known for his contributions to Nepal’s capital market through research, and authorship on stock market investment and financial...
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Asha Laghubitta Bittiya Sanstha Limited (ALBSL) has delivered an exceptional fourth-quarter performance for the fiscal year 2081/82, posting a net profit of Rs. 20.92 crore, up by a massive 248.27% compared to Rs. 6 crore in the same period of the previous year.

This remarkable surge in profitability is backed by a 67.47% rise in net interest income, which climbed to Rs. 73.88 crore from Rs. 44.11 crore. The microfinance institution also reported a 255.36% jump in operating profit, reaching Rs. 30.17 crore versus Rs. 8.49 crore in Q4 of FY 2080/81.

Asha Laghubitta’s paid-up capital increased by 14.25% to Rs. 73.30 crore, while retained earnings rose by 62.70% to Rs. 16.36 crore. Its total reserves now stand at Rs. 37.07 crore, reflecting a 13.86% annual growth. In terms of lending activity, loans and advances to customers grew by 9.35% to Rs. 10.44 arba, and customer deposits rose by 14.54% to Rs. 3.21 arba. Borrowings slightly increased by 0.93%, totaling Rs. 6.45 arba. Despite an 88.69% rise in impairment charges to Rs. 10.02 crore, the company’s earnings per share (EPS) saw a sharp increase from Rs. 9.37 to Rs. 28.55, while net worth per share improved to Rs. 172.90. On the risk front, the non-performing loan (NPL) ratio declined to 4.48% from 4.81%, and the cost of funds decreased significantly to 7.13%, compared to 8.44% a year earlier. However, the capital adequacy ratio (CAR) slightly dipped to 9.97% from 10.11%. The company closed the quarter with a price-to-earnings (PE) ratio of 31.38 times, and its stock was last traded at Rs. 895.81.

ParticularsQ4 FY 2081/82Q4 FY 2080/81Change (%)
Paid-up Capital (Rs ‘000)733,046.28641,616.00+14.25%
Retained Earnings (Rs ‘000)163,645.74100,581.47+62.70%
Reserves (Rs ‘000)370,748.74325,604.34+13.86%
Loans & Advances to Customers (Rs ‘000)10,449,350.309,555,877.72+9.35%
Customer Deposits (Rs ‘000)3,211,170.132,803,571.68+14.54%
Borrowings (Rs ‘000)6,454,107.266,394,859.36+0.93%
Net Interest Income (Rs ‘000)738,844.67441,180.31+67.47%
Personnel Expenses (Rs ‘000)356,551.41343,915.27+3.67%
Impairment Charges (Rs ‘000)100,268.4053,140.63+88.69%
Operating Profit (Rs ‘000)301,692.7584,897.03+255.36%
Net Profit (Rs ‘000)209,277.9860,089.87+248.27%
Capital Adequacy Ratio (%)9.9710.11â–¼ -1.38%
Non-Performing Loans (NPL) (%)4.484.81â–¼ -6.86%
Cost of Funds (%)7.138.44â–¼ -15.52%
Earnings Per Share (EPS in Rs.)28.559.37+204.84%
Net Worth per Share (in Rs.)172.90166.42+3.89%
Quarter-End PE Ratio (Times)31.38––
Quarter-End Market Price (in Rs.)895.81––
Asha Laghubitta Financial Highlights – Q4 FY 2081/82 vs Q4 FY 2080/81

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Rabindra Bhattarai is a respected finance expert, widely known for his contributions to Nepal’s capital market through research, and authorship on stock market investment and financial management.
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