Recently IPO issuing company Nepal Seva shows a poor performance in Q3 ; EPS below Rs 2

The recently IPO issuing company Nepal Seva laghubitta has reported a poor Q3 performance. The company that received 92 times oversubscription for the public issue, might now be in the top of the list of "poor performing companies". 

As 3rd quarter report published by the company it has earned a net profit of Rs 5.26 lakh till Chaitra end. The net profit was Rs 38.51 lakh in the corresponding quarter of the previous fiscal year. This accounts for a fall of 86.33%. Nepal Seva now has an eps of Rs 1.67.

Though the net interest income, also the primary source of Income for MFIs and BFIs, has amplified to Rs 1.28 crores from Rs 89.64 lakh in the previous year, the operating income was negative. Tremendous rise in staff expenses and other operating expenses were the main contributor for the falling profit

Staff expense increased to Rs 84.18 lakh from Rs 33.72 lakh in the previous year . The operating expense also escalated dramatically to Rs 43.67 lakh from Rs 23.86 lakh.

Company’s operating loss is Rs 83.92 lakh. The write back of Rs 92.19 lakh however helped in making the net profit positive. 

Borrowing has surged to Rs 21.40 crores, up from Rs 11.97 crores last year . Company's lending has increased massively by 90% to Rs 29.40 crores.

Nepal Seva had a Paid-up Capital of Rs 4.2 crores and Reserve of Rs 16.54 lakh by the end of 3rd quarter. 

Key Ratios:

EPS                : Rs 1.67
Networth        : Rs 103.93
Cost of Fund  : 11.67%
NPL                : 4.35%