The decrease in net profit has reflected in its EPS. The EPS of the company also declined to Rs 16.32 from earlier Rs 30.94. The company that increased its paid-up capital by Rs 39.7 million to Rs 345.7 million has decreased its reserve fund by Rs 57 million to Rs 339.6 million.
In the review period, the company raised its paid-up capital, deposit collection, loan extension and borrowing while its reserve fund, net interest income, profit, EPS, net worth per share, capital fund ratio, employee bonus, provision for tax and provision for possible loss have decreased.
The company has attributed the decrease in its net profit to high-interest rate collected by BFIs in loan and increase in operating expenses due to inflation. It also highlighted that the decrease is also due to dependent nature of its sources and unhealthy competition caused by increased number of microfinance companies.
In the review period, the company collected the deposit of Rs 1.51 billion, borrowed Rs 1.84 billion and extended loan of Rs 3.95 billion. During the period, the company has maintained a cost of fund of 10.76 percent, bad debt of 1.60 percent, P/E ratio of 39.04 times and net worth per share of Rs 198.22.
