Unnati reports a rise of 10.50% in the net profit; massive rise in staff expense

Unnati 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 1.16 crores till the end of 2nd quarter of FY 2074/75. The net profit was Rs 1.05 crores in the corresponding quarter of the previous fiscal year. This accounts for a rise of 10.50%. Unnati now has an annualized eps of Rs 60.28.

The company has shown a massive growth of 97% in its interest income. This has contributed for the surge in net interest income. The company has earned a net interest income of Rs 2.99 crore, up from 2.38 crores in the 2nd quarter of previous fiscal year. This accounts for a rise of 25.56%. 

Staff expense has surged to Rs 1.71 crores, showing a massive rise of 149%.

Company’s operating profit has however increased by 15.97% to 1.79 crores.  

Both borrowing and lending has shown a decent growth. Borrowing has surged to Rs 70.75 crores, up from Rs 44.85 crores last year showing a growth 57.77%. Company's lending has increased by 72.40% to Rs 59.91 crore. Unnati has a low NPL of 0.16 %.

The company’s reserve has increased tremendously by 216.68% to Rs  2.64 crores. The company now has a networth of Rs 168.60. 

The paid-up capital of the company stands at Rs 3.85 crores. The company had recently floated an IPO which has not been included in the balance sheet. 

Positive sides:

• Decent growth in net profit
• NPL as low as 0.16%.
• Hefty rise in Interest income.
• Huge growth in reserve

Negative Sides:

• Huge staff expense
• Heavy growth of 258% in interest expense.

Key Ratios:

EPS:                Rs 60.28
Networth:         Rs 168.60
Cost of Fund:   9.68%
NPL:                0.16%