Matribhumi Laghubitta Q4 Results: Revenue Hits Rs. 1.31B but Net Loss Rs. 57.9M, EPS at -9.22

Matribhumi Laghubitta Bittiya Sanstha Limited (MATRI) has published its audited financial results for the fourth quarter of fiscal year 2024/25. The results reveal strong revenue growth but persistent losses, raising concerns about long-term profitability and financial stability.

The company’s total revenue reached Rs. 1.31 billion in Q4, a 34% year-on-year increase compared to Rs. 980.12 million in the same period last year. Sequentially, revenue improved by 34% from Q3, reflecting higher loan portfolio activities and interest income growth.

Gross profit stood at Rs. 400.82 million, up from Rs. 309.93 million last year. The gross margin remained stable at 30.45%, showing that income growth has been matched with better cost control relative to operating expenses.

Despite strong revenue and gross profit, MATRI reported a net loss of Rs. 57.94 million in Q4, compared to a net profit of Rs. 79.84 million in the same quarter last year. The net margin fell to -4.40%, showing that rising provisioning costs and operating inefficiencies continue to weigh down profitability.

Key financial indicators further highlight the challenges. Return on Assets (ROA) slipped to -0.45%, while Return on Equity (ROE) stood at -4.66%, both reflecting negative shareholder value creation. Similarly, EPS (annualized) fell sharply to -9.22, compared to Rs. 12.71 last year, indicating declining investor returns.

From a valuation perspective, the company’s book value per share decreased to Rs. 183.16, while the market price per share surged to Rs. 1,204.84, showing strong investor confidence despite weak earnings. However, the price-to-earnings (PE) ratio remains in negative territory at -130.64, signaling speculative market behavior.

In the financial sector performance indicators, MATRI’s Capital Fund to RWA ratio stood at 8.06%, close to the regulatory minimum. NPL (non-performing loans) ratio improved slightly to 8.76% from 9.85% last year, but remains high. Loan loss provision coverage strengthened to 65.84%, indicating higher provisioning efforts. The cost of fundsdropped to 7.74% from 11.12% a year ago, while net interest spread widened to 7.26%, reflecting improved interest management.

Overall, MATRI has shown strong revenue expansion and improved sectoral indicators, but continued net losses raise serious concerns. Sustained profitability will depend on further controlling credit risks, enhancing efficiency, and maintaining adequate capital buffers.