Infinity Laghubitta Bittiya Sanstha Limited has stunned the microfinance sector with a staggering 104.71% profit growth in the fourth quarter of the last fiscal year, signaling renewed investor confidence in the microfinance space.
According to its unaudited Q4 report, Infinity posted a net profit of NPR 9.37 crore, up from NPR 4.57 crore in the same period last year. The growth is largely attributed to strong interest income and improved asset quality.
Financial Highlights for Q4:
- Net Interest Income: Increased by 39.64% to NPR 40.49 crore
- Operating Profit: Stood at NPR 13.49 crore
- Net Fee & Commission Income: Jumped 49.67% to NPR 7.27 crore
- Retained Earnings: Reversed from negative NPR 49.18 lakh to positive NPR 8.32 crore
- Reserve Fund: Rose from NPR 19.25 crore to NPR 20.17 crore
- Non-Performing Loans (NPL): Improved significantly from 10.19% to 7.43%
Infinity also saw growth in both deposit collection and loan disbursement:
- Deposits: NPR 1.39 billion
- Loan Portfolio: NPR 5.83 billion
This turnaround comes despite rising operating expenses, which climbed from NPR 26.01 crore to NPR 30.07 crore. But the improved revenue generation and asset quality appear to more than offset those costs.
For Investors
Infinity’s key valuation ratios now show:
- EPS (Earnings Per Share): NPR 18.85
- Net Worth Per Share: NPR 156.65
- Book Value of Total Assets Per Share: NPR 1,307.33
- P/E Ratio: 46.16 times
- Liquidity Ratio: 8.55%
This performance could generate renewed interest in microfinance stocks, especially those showing similar improvements in profitability and credit discipline.
Infinity Laghubitta’s strong numbers may set a positive tone for microfinance counters on NEPSE. Investors should, however, monitor NPL trends and cost controls going forward.
