Kishan Microfinance Shows hefty decline in net profit; EPS slips to Rs 9.82

 Kisan MicroFinance Bittiya Sanstha has published the report for 2nd quarter of the fiscal year 2074/75.

The company has earned a net profit of Rs 19.64 lakh till the end of 2nd quarter. The net profit was Rs 1.21 crores in the corresponding quarter of the previous fiscal year. This accounts for a fall of  83.78%. KMFL now has an eps of Rs 9.82.

The interest income has shown a slight decline of 16.12% amounting Rs 6.49 crore. Interest expense has grown by 18.11% to Rs 4.07crore. The net interest income decreased by 17.86% to Rs 2.37 crore. 

Staff expense has surged to Rs 2.25 crores, showing a massive increase of 50.68%.

Company’s operating profit decreased by 84.53% to Rs 18.74 lakh. 

Both deposit collection and lending has shown an average growth. Deposit collection has surged to Rs 20.42 crore, up from Rs 11.81 crore last year showing a growth 72.96%. Company's lending has increased by 50.70% to Rs 85.54 crore. KMFL has NPL of  2.31%.

The company’s reserve has risen by 27.81% to Rs  2.39 crore. The company now has a networth of Rs 159.68. 

Positive sides:

• Decent growth in deposit and lending

Negative Sides:

• Hefty decline in Net profit 
• EPS shrinks to Rs 9.82
• NPL rise to 2.31%

Key Ratios:

EPS:                Rs 9.82
Networth:         Rs 159.68
Cost of Fund:  10%
NPL:                2.31%