(SMPDA) Sampada Laghubitta Reports Strong Q3 Performance with 75% Surge in Net Profit

Sampada Laghubitta Bittiya Sanstha has posted a significant improvement in its financial performance for the third quarter of FY 2081/82. With strong interest income, controlled cost of funds, and growing reserves, the company has managed to boost its net profit by an impressive 74.88% compared to the same period last year.

Strong Growth in Core Earnings

Net interest income soared to Rs. 483.33 million, up from Rs. 212.41 million last year — marking a 127.54% increase. This remarkable growth indicates better asset utilization and margin management. Likewise, operating profit rose from Rs. 87.45 million to Rs. 152.94 million, and net profit jumped from Rs. 61.22 million to Rs. 107.06 million.

Loans, Deposits, and Borrowings

The company’s total loans and advances to customers increased modestly by 3.22%, reaching over Rs. 10.06 billion. Customer deposits grew by 3.85% to Rs. 2.64 billion, reflecting improved public trust and deposit mobilization efforts. However, total borrowings decreased by 3.45%, which could signal cautious debt management or repayment focus.

Costs and Impairment Charges

Despite the revenue growth, the company's personnel expenses nearly doubled, rising from Rs. 121.24 million to Rs. 234.73 million — a 93.61% surge. Even more striking is the jump in impairment charges, which skyrocketed by over 8000%, from Rs. 0.72 million to Rs. 58.73 million, suggesting higher provisioning against risky loans.

Financial Health Indicators

Sampada Laghubitta's reserves climbed 21.40% to Rs. 385.58 million, and retained losses shrank substantially from Rs. -44.75 million to Rs. -7.29 million. The Earnings Per Share (EPS) improved to Rs. 20.37 from Rs. 11.65, while Net Worth Per Share rose to Rs. 153.98.

Challenges and Risk Metrics

On the downside, the company's Non-Performing Loan (NPL) ratio jumped from 4.10% to 6.71%, indicating rising credit risk. Capital adequacy slightly dipped from 8.50% to 8.46%, while the cost of fund dropped from 9.90% to 7.84%, which is a positive sign of reduced interest burden.

Market Valuation

With a quarter-end market price of Rs. 971.08 per share and a PE ratio of 47.68 times, the stock appears to be trading at a premium, reflecting investor confidence despite rising NPL levels.