Swabalamban Laghubitta Bittiya Sanstha’s Q2 Performance in FY 2081/82

Swabalamban Laghubitta Bittiya Sanstha Limited (SWBBL) has delivered an outstanding financial performance in the second quarter of the fiscal year 2081/82. The company achieved significant growth in net profit and other key financial metrics, showcasing its resilience and operational efficiency. Below is a detailed overview of its performance:

1. Surge in Net Profit

SWBBL recorded a remarkable 94.21% increase in net profit, which rose to Rs. 80.72 crores in Q2 of FY 2081/82. This is a substantial jump from Rs. 41.56 crores reported in the same quarter of the previous fiscal year. This growth highlights the company’s ability to enhance profitability despite challenges.

2. Growth in Net Interest Income and Operating Profit

The company’s financial performance was further strengthened by:

• Net Interest Income: Increased by 20.02% to Rs. 80.01 crores.
• Operating Profit: Surged by 94.21% to Rs. 11.53 crores.

These figures reflect the company’s effective core operations and revenue generation management.

3. Increase in Impairment Charges

Despite the overall growth, SWBBL faced a 12.77% rise in impairment charges, which amounted to Rs. 32.98 crores. This indicates higher provisions for potential loan losses, a common challenge in the financial sector.

4. Changes in Capital and Borrowings

The company’s financial structure saw the following changes:

• Paid-up Capital: Increased by 14.25% to Rs. 1.65 Arba.
• Retained Earnings: Declined by 60.11% to Rs. 10.17 Arba.
• Borrowings: Decreased by 21.52% to Rs. 2.58 Arba.
• Loans and Advances: Slightly declined by 0.49% to Rs. 19.48 Arba.

These changes reflect the company’s efforts to optimize its capital structure and manage liabilities.

5. Improved Financial Ratios

SWBBL demonstrated improved financial health through the following key ratios:

• Capital Adequacy Ratio (CAR): Increased by 7.40% to 12.19%, indicating a stronger financial base.
• Non-Performing Loan (NPL) Ratio: Declined significantly by 27.11% to 8.28%, reflecting better asset quality.
• Cost of Funds: Decreased by 9.06% to 8.03%, showcasing improved cost management.

6. Key Financial Indicators

The company’s financial performance is further reflected in the following metrics:

• Earnings Per Share (EPS): Increased by 69.99% to Rs. 9.75 (annualized).
• Net Worth Per Share: Declined by 10.80% to Rs. 210.43.
• Market Price: Stood at Rs. 870 at the end of the quarter.
• Price-to-Earnings (P/E) Ratio: 89.27.

Conclusion

Swabalamban Laghubitta Bittiya Sanstha Limited (SWBBL) has delivered an impressive financial performance in the second quarter of FY 2081/82, with a substantial increase in net profit, net interest income, and operating profit. Despite higher impairment charges and a decline in retained earnings, the company’s improved capital adequacy ratio, reduced NPL ratio, and strong financial indicators demonstrate its resilience and growth potential. SWBBL remains well-positioned for future success in the microfinance sector.

Comparison of Swabalamban Laghubitta Bittiya Sanstha’s Key Financial Highlights for Q2 of This Fiscal Year and the Previous Fiscal Year.