Rising Interest expense hits Mahuli Laghubitta on Net Profit ; EPS slips to Rs 24.63

The company with cent percent EPS once, has now reported that of just Rs 24.63. The Net profit of the company has slipped by 61.83% and the operating profit has plummeted by 13.04% . The decline in the profit highly seems to be contributed by the rising interest expense, which has resulted a decline in the company's Net Interest Income. The company's Net Interest Income has fallen by nearly 13% in the review period. 

The rising fee, commission and staff expenses have also significantly conributed for the fall in Net profit. 

The Paid-up capital of the comany remained stagnent at Rs 6 crores, during the review period. The company's reserve escalated by 37% to Rs 15.07 crores. In terms of deposit and lending, a growth of 20.30% and 41.90% resp was seen. 

The companys NPL surged to 1.83 from 1.79 last year. 

Major Indicators : 

Earning per shares (EPS)                : Rs 24.63

Price to earning ratio (P/E Ratio)     : 104.97 times 

Networth per Share                          : Rs 351.19

Capital Adequacy Ratio (CAR)        : 13.70%

P/B Ratio                                          : 7.43 times

NPL                                                  : 1.83 %

  

Positive Sides

• Spectacular Networth per share
• Decent NPL
• Huge Reserves
• High Return on Equity

 

Negative Sides

• Huge growth in Interest Expense
• Significant increase in staff expense
• Tight CAR
• Increase in Non-performing loan
• Increase in Cost of Fund

 

(Disclaimer : The published report is just unaudited 4th quarter report, the final audited balance-sheet may vary. Thus, investors are suggested to make their investment decisions based on their risk bearing capacity. )