CYC Nepal Laghubitta Net Profit Decline Due To Increase In Bad Debt

Feb 06, 2023 11:14 AM Merolagani



CYC Nepal Laghubitta Bittiya Sanstha (CYCL) has published its second quarter report of the current FY. As per the report, the net profit of the company has decreased in the review period compared to the corresponding period of the last FY.

The company earned a net profit of Rs 23.8 million in the review period compared to Rs 58.1 million of the corresponding period of the last FY. The net profit decreased by 58.97 percent during the period.

Although the company increased its net interest income, an increase in bad debt and provision for possible losses pulled down its net profit.

 In the review period, its net interest income increased by 16.73 percent and total operating income by 17.47 percent. However, its operating profit decreased by 39.28 percent.

During the period, the bad debt of the company increased by 1.92 percent to 4.62 percent due to which it maintained a provision for possible losses of Rs 14.7 million.

In the review period, it logged EPS of Rs 39.24, P/E ratio of 49.54 times and net worth per share of Rs 333.43.

The company with Rs 121.6 million in paid-up capital has reserve fund of Rs 247.4 million. During the period, its collected deposits of Rs 1.57 billion, borrowed Rs 1.77 billion and extended loans of Rs 4.01 billion.

 




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