Got unnati Microfinance shares in IPO ? See how is your company performing

Unnati Microfinance had recently floated an IPO worth Rs 1.65 crores to general public, staffs and mutual funds. The shares haven't yet started trading well in the secondary market, so IPO alotees may only be the shareholders now. This report will give the shareholders as well the interested shareholders an insight of the company. 

As per the 3rd quater report, bhairahawa based Unnati microfinance has earned a net profit of Rs 1.8 crores. This is 13.63% more then what company earned in the corresponding quarter of previous year. Unnati now has a paid-up capital of Rs 5.5 crores with a reserve of Rs 3.29 crores. Unnati has an EPS of Rs 43.86 and a networth of Rs 159.82.

Being a microfinance, the company lends out of the borrowed fund. UMB's borrowing has escalated to Rs Rs 72 crores from Rs 46.22 crores last year. This accounts for a growth of 55.77%. Meanwhile, The company's deposit collection has increased by 141.58% to Rs 28.21 crores. Similarly, a significant growth is seen in lending as company has extended a loan of Rs 88 crores, up from Rs 48.81 crores last year. 

In terms of profit and loss report, this microfinance was no different from other BFIs as UMB also suffered from rising interest rates. Though interest income has increased , the percentage growth of interest expense was higher.As a result, net interest income growth slowed down to merely 22.46%. This growth is however better when compared with the same of other MFIs. The company has write back Rs 3.05 lakh this year , against no write back last year. Unnati has provisoned Rs 46.14 lakh this year. This is massive 80.31% more then that set aside last year.  Though the company's income from other operation increased significantly, the staff expense surged too. Unnati's staff expense increased by 116%.     

Key Ratios:

EPS                : Rs 43.86
Networth         : Rs 159.82

NPL                 : 0.36%

CAR                :10.03%

Cost of Fund   : 10.13%