Kalika Laghubitta Bittiya Sanstha Limited (KMCDB) has posted a net profit of Rs. 2.90 crore in the first quarter of the fiscal year 2082/83, marking a 19.63% increase from Rs. 2.42 crore recorded in the same quarter of the previous fiscal year. The growth in profitability was largely driven by a sharp increase in net interest income and improved cost efficiency.
Strong Growth in Core Income
The company’s net interest income surged by 31.23%, reaching Rs. 10.87 crore, compared to Rs. 8.29 crore in the corresponding period last year.
Despite a modest growth in lending, the improved spread and better asset utilization contributed to this increase.
- Loans and advances rose slightly by 0.71% to Rs. 4.88 arba
- Customer deposits increased by 1.40% to Rs. 1.66 arba
- Borrowings, however, declined by 7.16% to Rs. 2.59 arba, reflecting reduced reliance on external funding sources.
Profitability and Financial Position
Operating profit climbed by 19.45% to Rs. 2.90 crore, while impairment charges more than doubled to Rs. 1.19 crore, signaling rising credit risk in the loan portfolio.
Meanwhile, retained earnings improved by 14.99% to Rs. 7.36 crore, and total reserves increased by 3.83% to Rs. 29.94 crore — reinforcing the company’s capital base.
Kalika Laghubitta’s capital adequacy ratio stood at 12.35%, slightly below 12.95% in the previous year, yet remaining well above the regulatory requirement.
Asset Quality and Efficiency Metrics
The company’s non-performing loan (NPL) ratio increased to 6.40% from 4.24%, indicating some deterioration in asset quality. However, the cost of funds fell significantly to 6.96%, compared to 8.23% a year earlier — reflecting improved financial discipline and funding management.
Earnings & Market Performance
The earnings per share (EPS) rose to Rs. 28.51 from Rs. 23.83, representing a 19.63% improvement, while the net worth per share stood at Rs. 191.51, up from Rs. 186.44.
At the end of the quarter, Kalika Laghubitta’s market price was Rs. 1,015 per share, with a price-to-earnings (P/E) ratio of 35.60 times — indicating strong investor sentiment and valuation in the microfinance segment.
Major Financial Highlights (In Rs. ‘000)
| Particulars | Q1 2082/83 | Q1 2081/82 | Change (%) |
|---|---|---|---|
| Paid-up Capital | 407,691.31 | 407,691.31 | 0.00% |
| Retained Earnings | 73,636.80 | 64,036.18 | +14.99% |
| Reserves | 299,428.92 | 288,370.63 | +3.83% |
| Borrowings | 2,591,816.95 | 2,791,769.99 | -7.16% |
| Deposits from Customers | 1,669,911.85 | 1,646,933.49 | +1.40% |
| Loans & Advances | 4,881,902.46 | 4,847,429.14 | +0.71% |
| Net Interest Income | 108,785.81 | 82,898.23 | +31.23% |
| Personnel Expenses | 64,590.90 | 53,440.17 | +20.87% |
| Impairment Charges | 11,953.16 | 5,717.33 | +109.07% |
| Operating Profit | 29,013.25 | 24,289.80 | +19.45% |
| Net Profit | 29,057.20 | 24,289.80 | +19.63% |
| Distributable Profit | 9,600.62 | — | — |
| Capital Adequacy Ratio | 12.35% | 12.95% | -4.63% |
| NPL Ratio | 6.40% | 4.24% | +50.94% |
| Cost of Fund | 6.96% | 8.23% | -15.43% |
| EPS (Rs.) | 28.51 | 23.83 | +19.63% |
| Net Worth per Share (Rs.) | 191.51 | 186.44 | +2.72% |
| Qtr End P/E Ratio | 35.60 | — | — |
| Qtr End Market Price (Rs.) | 1,015 | — | — |
Conclusion
Kalika Laghubitta Bittiya Sanstha Limited delivered a robust first-quarter performance, demonstrating strong income growth and operational efficiency.
Despite an uptick in impairment charges and NPLs, the company maintained solid profitability and a healthy balance sheet. Its consistent growth trajectory and efficient cost management continue to strengthen its position among Nepal’s leading microfinance institutions.