First Microfinance first to publish the 3rd quarter report; Shows a growth of 26.71% in net profit

As per the 3rd quarter report published today, First Microfinance has earned a net profit of Rs 7.30 crores which is around 26.7% more then that earned in the corresonding quarter of the previous fy. The rise in Net interest Income by approximately 26% has contributed for the rise in Net profit. 

The company has increased its paid up capital by 114.6% to Rs 56.77 crores in the review period, whereas a surge of 44.72% is noticed in the company's reserve. A balanced growth is seen in the borrowing and lending, where both of them experienced a increment of around 15%. The company has almost no Non-performing loan. 

In terms of the key ratios, the company has a per share earning of Rs 25.74. and has a book value per share of Rs 125.45. The company is currently trading at a price 7.5 times of its book value and 36.53 time the companys' earning. 

Positive Sides :

• Decent rise in Net Profit and Opearting Profit. 
• Negligible Non-Performing Loan. 
• Balanced growth in lending and borrowing. 

Negative Sides :

• Approximately 41% drop in EPS 
• Nearly 8.92% decline in Networth Per Share
• High p/e and p/b ratio.

Key Ratios :

• Earning per share : Rs 25.74
• Net worth              : Rs 125.45
• P/E Ratio              : 36.53 times
• P/B ratio                : 7.5 times