Category: Q1 REPORTS MICROFINANCE

Laxmi Laghubitta Bittiya Sanstha Limited (LLBS) has reported remarkable growth in its first-quarter financial results for fiscal year 2081/82, showcasing a strong upward trend across key performance indicators.

Key Highlights:

1. Net Profit: The company’s net profit surged by 78.48% to Rs. 1.70 Crore, up from Rs. 95.32 Lakh in the same quarter last year. This substantial profit growth reflects the company’s effective management and expansion strategies.
2. Earnings per Share (EPS): EPS increased significantly from Rs. 8.63 last year to Rs. 15.41 this quarter, highlighting improved profitability and value for shareholders.
3. Net Interest Income: Net interest income rose by 43.89%, reaching Rs. 11.35 Crore, indicating growth in the company’s core lending operations.
4. Operating Profit: Operating profit saw an impressive increase of 78.97%, totaling Rs. 2.40 Crore, driven by strong revenue growth and cost efficiencies.
5. Reserves and Financial Position: LLBS’s reserves grew by 7.18% to Rs. 28.69 Crore, reinforcing its robust financial position and enhancing its capacity for future growth.
6. Cost of Fund and Capital Adequacy: The cost of fund decreased by 15.28% to 8.15%, suggesting more efficient borrowing costs. However, capital adequacy fell by 10.00% to 9.18%, slightly lowering the company’s buffer for financial resilience.
7. Non-Performing Loans (NPL): The NPL ratio rose by 15.24% to 7.94%, indicating an increase in delinquent loans, which could warrant attention to maintain asset quality.
8. Net Worth per Share: Net worth per share increased by 2.34%, reaching Rs. 168.70, a steady rise that underpins the company’s solid foundation.
9. PE Ratio and Stock Performance: LLBS’s price-to-earnings (PE) ratio stands at 70.74 times, and its stock closed at Rs. 1,090, indicating strong market confidence and investor interest.

Conclusion:

The first-quarter performance of Laxmi Laghubitta Bittiya Sanstha Limited reflects impressive financial growth and strategic effectiveness, with robust profit margins, improved EPS, and strengthened reserves. Despite a slight rise in NPLs and a drop in capital adequacy, the company’s overall outlook remains positive, setting a promising foundation for the remainder of the fiscal year.

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