Upakar Laghubitta Bittiya Sanstha Limited (ULBSL) has released its unaudited financial performance for the fourth quarter of fiscal year 2081/82, showcasing an impressive rebound in its financial results. The company achieved a net profit of Rs. 3.42 crore, a significant contrast to the net loss of Rs. 3.51 crore recorded in the same quarter of the previous fiscal year.
The surge in profitability led to an increase in Earnings Per Share (EPS), which climbed to Rs. 32.26, marking a notable recovery from a negative EPS of Rs. 33.07 in Q4 of 2080/81. The company’s net worth per share rose to Rs. 223.22 from Rs. 192.43, indicating a growth of 16%.
Upakar Laghubitta’s net interest income grew by 16.82% to approximately Rs. 15.53 crore, up from Rs. 13.29 crore during the same timeframe last year. The operating profit for the quarter was Rs. 4.66 crore, a significant reversal from an operating loss of Rs. 4.32 crore in the equivalent quarter last year.
The organization also noted a remarkable reduction in impairment charges, which plummeted by over 83% to Rs. 1.08 crore, down from Rs. 6.39 crore the previous year.
Total borrowings increased by 23.67%, reaching Rs. 92.36 crore, while customer deposits saw a rise of 17.31% to Rs. 1.40 Arba. Loans and advances to customers amounted to Rs. 2.45 Arba, reflecting a year-on-year increase of 12.89%.
In spite of the financial improvement, the company’s Non-Performing Loan (NPL) ratio significantly worsened to 4.85%, up from 2.13% last year, which indicates rising pressure on asset quality. The Capital Adequacy Ratio (CAR) also decreased to 9.30% from 11.02%, whereas the cost of funds improved to 6.93%, down from 8.40%.
As of the conclusion of Q4, the company’s market price was Rs. 3,389.50, which corresponds to a Price-to-Earnings (PE) ratio of 105.06 times.
