Dhaulagiri Laghubitta Bittiya Sanstha Limited (DLBS) has reported a net profit of Rs. 25.95 lakh in the first quarter (Q1) of the fiscal year 2082/83, marking a significant turnaround from a net loss of Rs. 1.24 crore in the same quarter of the previous year.
The company’s net interest income surged by 78.19% to Rs. 3.46 crore, primarily driving its improved profitability. However, impairment charges rose by 31.23% to Rs. 86.36 lakh, reflecting higher loan loss provisions. Despite this, operating profit rebounded to Rs. 34.62 lakh, compared to a negative Rs. 1.61 crore in Q1 FY 2081/82.
On the balance sheet side, customer deposits grew slightly by 0.87% to Rs. 86.39 crore, while loans and advances increased by 1.42% to Rs. 2.23 arba. The company benefited from a sharp decline in its cost of funds, which dropped to 7.46% from 16.55%, significantly easing interest expenses.
Despite the profit recovery, retained earnings fell by 25.17% to Rs. 10.71 lakh. In contrast, reserves rose modestly by 2.92% to Rs. 9.44 crore.
From a market perspective, EPS improved to Rs. 7.80 from a negative Rs. 37.47, and net worth per share increased by 1.28% to Rs. 171.75. DLBS shares were trading at Rs. 1,284, giving a P/E ratio of 164.64 times.
Key Financial Highlights (Q1 FY 2082/83):
| Particulars (Rs '000) | Q1 2082/83 | Q1 2081/82 | Change (%) |
|---|---|---|---|
| Paid-up Capital | 133,100 | 133,100 | 0.00 |
| Retained Earnings | 1,071 | 855.63 | 25.17 |
| Reserves | 94,427.9 | 91,747.1 | 2.92 |
| Borrowings | 1,224,721.5 | 1,233,799.9 | -0.74 |
| Deposits | 863,919.8 | 856,429.8 | 0.87 |
| Loans & Advances | 2,234,621.1 | 2,203,425.0 | 1.42 |
| Net Interest Income | 34,600.3 | 19,417.3 | 78.19 |
| Operating Profit | 3,462.5 | -16,111.6 | — |
| Net Profit | 2,595.1 | -12,468.3 | — |
| Capital Adequacy Ratio | 8.56% | 8.02% | +6.73% |
| NPL | 9.77% | 8.10% | +20.62% |
| Cost of Fund | 7.46% | 8.94% | -16.55% |
| EPS (Rs.) | 7.80 | -37.47 | — |
| Net Worth per Share (Rs.) | 171.75 | 169.57 | 1.28 |
| Market Price (Rs.) | 1,284 | — | — |
Summary:
Dhaulagiri Laghubitta has made a strong recovery in Q1 FY 2082/83, reversing last year’s loss into profit mainly due to a surge in net interest income and reduced funding costs. However, rising NPLs and impairment charges remain areas of concern.