Kalika Laghubitta Reports Strong Q3 Performance in FY 2081, Profit More Than Doubles

Kalika Laghubitta Bittiya Sanstha has delivered a remarkable financial performance in the third quarter of the fiscal year 2081, as of Chaitra end. The microfinance institution demonstrated significant growth across key financial indicators, underscoring strong operational efficiency and income growth.

The company's net interest income surged by 48.71% year-on-year, reaching Rs. 268.13 million, up from Rs. 180.31 million in the same period last year. This robust growth was further bolstered by a 31.33% rise in other operating income, totaling Rs. 41.47 million. Consequently, total operating income climbed to Rs. 309.60 million, representing a 46.12% increase from last year’s Rs. 211.89 million.

Operating profit saw a massive 111.43% growth, hitting Rs. 97.04 million compared to Rs. 45.94 million last year. After adjusting for impairment charges of Rs. 6.57 million (a slight drop from Rs. 6.86 million), the profit for the period skyrocketed by 111.67% to Rs. 68 million from Rs. 32.13 million in Chaitra 2080. This profit boost also led to a significant jump in Earnings Per Share (EPS), which doubled to Rs. 22.24 from Rs. 11.50, while the distributable EPS rose to Rs. 12.06 from Rs. 8.21.

The company’s balance sheet also strengthened notably. Loan and advances grew by 20.11%, reaching Rs. 4.68 billion, while deposits and borrowings rose 21.15% to Rs. 4.26 billion. Share capital increased by 9.5% to Rs. 407.69 million. Likewise, reserves increased by 10.57% to Rs. 273.28 million, reflecting retained profits and financial resilience.

Other indicators further underscore Kalika Laghubitta’s improved standing. The cost of fund dropped to 7.56% from 9.16%, enhancing interest rate spread to 7.44% from 5.93%, pointing toward more efficient financial intermediation. The base rate declined to 14.22% from 14.88%, suggesting a relatively more affordable borrowing environment for clients. Non-performing loans (NPL) slightly rose to 5.27% from 4.96%, signaling manageable credit risk.

The PE ratio dropped to 46.85 from 66.23, implying a relatively more attractive valuation based on current earnings. Net worth per share stood at Rs. 176.59, slightly up from Rs. 164.18. Capital fund to RWA declined to 10.84% from 13.84%, but it still reflects a reasonably capitalized position.

In conclusion, Kalika Laghubitta’s third quarter of FY 2081 shows strong earnings growth, enhanced profitability metrics, and improved operational efficiency, despite minor upticks in credit risk and capital adequacy challenges. The outlook remains positive if this performance trend continues in the final quarter.