Ganapati Laghubitta Bittiya Sanstha Limited (GMFBS) has achieved notable financial growth in the second quarter of the fiscal year 2081/82. The microfinance institution reported a 14.97% rise in net profit, reaching Rs. 1.23 crores, compared to Rs. 1.07 crores in the same quarter of the previous year.
Financial Performance
GMFBS witnessed an impressive 42.94% growth in net interest income, which amounted to Rs. 7.5 crores. Operating profit also increased by 14.97%, totaling Rs. 1.76 crores. A reversal of impairment charges worth Rs. 53.37 lakh contributed positively to the company’s overall profitability.
The company’s paid-up capital remained unchanged at Rs. 15.15 crores. However, retained earnings showed remarkable growth, increasing by 300.37% to Rs. 83.3 lakhs. Total reserves stood at Rs. 4.02 crores, demonstrating financial stability.
Loan Portfolio and Borrowings
GMFBS recorded an 8.22% rise in borrowings, reaching Rs. 1.62 Arba. Loans and advances to customers also increased by 2.79%, amounting to Rs. 2.11 Arba. This indicates a steady expansion in lending activities.
Key Financial Indicators
The company’s capital adequacy ratio declined by 5.61%, standing at 8.42%. However, asset quality improved significantly as the Non-Performing Loan (NPL) ratio dropped by 11.37% to 4.13%. The cost of funds also saw a positive change, decreasing by 20.59% to 8.33%, reducing financial pressure.
GMFBS maintained strong financial indicators, with annualized Earnings Per Share (EPS) at Rs. 16.30, reflecting the company’s profit growth. However, the net worth per share declined by 9.99% to Rs. 132.08. By the end of the quarter, the company’s shares were trading at Rs. 1,730, with a Price-to-Earnings (P/E) ratio of 106.15.
Comparison of Ganapati Laghubitta Bittiya Sanstha’s Key Financial Highlights for Q2 of This Fiscal Year and the Previous Fiscal Year.
Conclusion
Ganapati Laghubitta continues to demonstrate resilience and financial strength despite challenges in the microfinance companies sector. With a growing loan portfolio, improved asset quality, and a steady increase in profitability, the company remains committed to sustainable growth and financial stability. Investors and stakeholders can look forward to continued progress in the coming quarters.
