Himalayan Laghubitta Turns Profitable with Surge in Interest Income

Himalayan Laghubitta Bittiya Sanstha Limited (HLBSL) has published its unaudited financial report for the fourth quarter of the last fiscal year. According to the report, the microfinance institution has recorded a positive net profit, reversing the previous year's negative earnings.

By the end of the last fiscal year, HLBSL posted a net profit of NPR 91.7 million, compared to a net loss of NPR 2 million in the same period of the previous year. This turnaround is attributed to a significant rise in net interest income.

During the review period, the company’s net interest income surged by 58.50%, and other operating income rose by 18.48%. Overall, its total operating income increased by 52.77%. While operating profit was negative NPR 3.5 million in the previous year, it stood at a positive NPR 131.1 million in the last fiscal year.

As a result, HLBSL’s earnings per share (EPS) also turned positive—from a negative NPR 0.63 to a positive NPR 28.70. The company’s price-to-earnings (P/E) ratio stood at 35.38 times, and net worth per share was NPR 148.16 as of mid-July.

With a paid-up capital of NPR 319.8 million, the company has NPR 227.9 million in its reserve fund. As of fiscal year-end, it had mobilized NPR 4.93 billion in deposits and borrowings, and invested NPR 4.92 billion in loans.