5th May 2025, Kathmandu
Laxmi Laghubitta Bittiya Sanstha Limited has reported a solid 13% increase in its net profit for the current fiscal year. This year, the microfinance institution’s net profit has surpassed NPR 50 million, a significant rise compared to the NPR 44 million profit reported at the same time last year.
Laxmi Laghubitta Net Profit Increase
Along with this, the company has also seen improvements in its earnings per share (EPS) and net worth per share.
Impressive Profit Growth
For the current fiscal year, LLaxmi Laghubitta has earned a net profit of over NPR 50 million. This represents an increase of more than 13% compared to the NPR 44 million profit earned in the same period last year. The company’s earnings per share (EPS) have also risen by NPR 1.76, bringing it to NPR 15.17 per share. The net worth per share now stands at NPR 168.21, reflecting strong financial growth.
Increased Interest Income and Operating Profit
Laxmi Laghubitta has seen a notable boost in its interest income this year. Interest earnings rose from NPR 277.9 million to NPR 323.4 million. This increase has contributed to the company’s overall profit improvement. Furthermore, the company’s operating profit has also grown. It increased from NPR 63.4 million last year to NPR 68.5 million this year.
Strong Capital and Reserves
The company’s capital base remains strong. Laxmi Laghubitta has a paid-up capital of NPR 441.6 million. It also has a reserve fund of NPR 22.76 million. In addition, the microfinance institution has retained earnings exceeding NPR 23.5 million. These reserves ensure that the company is well-equipped to handle future growth and any financial challenges.
Expanding Loan Portfolio and Deposits
Laxmi Laghubitta has shown continued growth in its loan and deposit activities. The company raised nearly NPR 295 million in loans. With total loans now amounting to NPR 612 million, Laxmi Laghubitta is actively expanding its lending operations. The institution also increased its deposit collection, amassing over NPR 2.5 billion. These figures reflect the company’s growing influence and solid performance in the microfinance sector.
Non-Performing Loans (NPL) Concerns
While Laxmi Laghubitta has made impressive strides in its financial growth, its non-performing loans (NPL) ratio has also increased. This year, the NPL ratio stands at 9.16%. Although this is an increase, the ratio remains manageable and within the acceptable range for the microfinance industry. The company is taking steps to improve its loan quality and reduce the proportion of non-performing loans.
Solid Dividend-Paying Capacity
One of the key highlights of Laxmi Laghubitta’s financial report is its strong dividend-paying capacity. With a distributable profit of NPR 23.5 million, the company is well-positioned to pay dividends. Additionally, Laxmi Laghubitta has made provisions for an impairment charge of NPR 1.58 million, further reflecting its cautious approach to financial management.
Future Outlook: Positive Growth Ahead
Laxmi Laghubitta is showing positive growth trends, which should continue in the future. The company’s core operations, including its interest income, operating profit, and reserves, have all improved. These positive trends ensure that the company will likely maintain its strong performance in the coming fiscal years.
Strategic Focus on Financial Health
The company’s focus on improving its financial health has paid off. The increase in interest income and operating profit highlights the effectiveness of its business strategies. Additionally, the company’s conservative approach toward managing its non-performing loans (NPL) will help it maintain stability. By strengthening its financial foundation, Laxmi Laghubitta is preparing for long-term success.
Conclusion: Laxmi Laghubitta’s Bright Future
Laxmi Laghubitta Bittiya Sanstha Limited has delivered an outstanding performance this year, with a 13% increase in its net profit. The company’s ability to grow its earnings, expand its capital reserves, and improve its interest income shows that it is well-managed. Despite a slight rise in NPLs, the company’s financial health remains strong. With a solid foundation for future growth, Laxmi Laghubitta is on track to continue its success in the microfinance sector.
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