Deprosc Laghubitta Bittiya Sanstha Reports Remarkable Growth in Q2 FY 2081/82

Deprosc Laghubitta Bittiya Sanstha Limited (DDBL) has shown strong financial performance in the second quarter of fiscal year 2081/82. The company recorded impressive improvements across key metrics, marking a period of significant growth. This remarkable growth highlights DDBL’s strong operational efficiency and strategic financial management. Below is a detailed breakdown of its performance:

1. Key Financial Highlights

Net Profit: Increased by 102.49% to Rs. 24.56 crores (up from Rs. 12.13 crores in Q2 of FY 2080/81).
Net Interest Income: Grew by 68.98% to Rs. 99.46 crores.
Operating Profit: Surged by 111.92% to Rs. 36.72 crores.

2. Impairment Charges and Cost of Funds

Impairment Charges: Rose sharply by 81.84% to Rs. 23.37 crores, reflecting higher provisions for potential loan losses.
Cost of Funds: Declined from 9.66% in Q2 2080/81 to 8.11% this quarter, easing financial pressure.

3. Growth in Deposits and Loans

Customer Deposits: Expanded by 6.67% to Rs. 10.24 Arba.
Loans and Advances: Increased by 4.61% to Rs. 24.23 Arba, demonstrating the company’s growing outreach in microfinance.

4. Capital Adequacy Ratio (CAR)

The capital adequacy ratio (CAR) declined to 12.40% from 14.03% in the previous year, indicating a need for closer regulatory compliance monitoring.

5. Shareholder Metrics

Earnings Per Share (EPS): Annualized EPS improved to Rs. 28.80 (up from Rs. 14.22 in the previous year).
Net Worth Per Share: Increased by 7.45% to Rs. 204.22, reflecting growth in shareholder value.
Market Performance: The stock closed at Rs. 785 per share, with a Price-to-Earnings (P/E) ratio of 27.26 times.

Comparison of Key Financial Highlights for Q2 of This Fiscal Year and the Previous Fiscal Year

Particulars	Q2 2081/82	Q2 2080/81	Difference (%)
Paid-Up Capital	1,706,196.98	1,706,196.98	0.00%
Share premium	0.00	0.00	–
Retained Earnings	423,042.98	321,269.14	31.68%
Reserves	1,355,227.12	1,215,402.17	11.50%
Borrowings	11,467,732.25	11,467,947.27	0.00%
Deposits from Customers	10,240,177.10	9,600,064.32	6.67%
Loans & Advances to Customers	24,238,866.99	23,169,749.00	4.61%
Net Interest Income	994,647.04	588,634.63	68.98%
Personnel Expenses	377,796.07	306,701.46	23.18%
Impairment Charges	233,779.90	128,561.01	81.84%
Operating Profit	367,281.57	173,310.26	111.92%
Net Profit	245,652.14	121,317.18	102.49%
Distributable Profit/(Loss) after P/L Appropriation & Regulatory Adjustments	423,042.98	568,369.23	-25.57%
Capital Adequacy (%)	12.40	14.03	-11.62%
NPL (9%)	6.09	10.41	-41.50%
Cost of Fund (%)	8.11	9.66	-16.05%
Annualized EPS (In Rs.)	28.80	14.22	102.49%
Net Worth per Share (In Rs.)	204.22	190.06	7.45%
Qtr End PE Ratio (times)	27.26	–	–
Qtr End Market Price (In Rs.)	785	–	–

Unaudited Condensed Statement of Financial Position As on Quarter Ended 29th Poush 2081

Unaudited Condensed Statement of Profit or Loss For The Quarter Ended 29th Poush 2081

Conclusion

Deprosc Laghubitta Bittiya Sanstha Limited (DDBL) has delivered an exceptional financial performance in the second quarter of FY 2081/82, with a 102.49% surge in net profit and significant growth in net interest income and operating profit. Despite higher impairment charges and a slight decline in the capital adequacy ratio, the company’s strong financial position and improved shareholder metrics like EPS of Rs. 28.80 and net worth per share of Rs. 204.22 highlight its resilience and growth potential. DDBL continues strengthening its position in the microfinance sector, offering promising prospects for its stakeholders.