Gurans Laghubitta Posts 20.62% Net Profit Growth in Q3 FY 2081/82

Kathmandu, April 19, 2025 – Gurans Laghubitta Bittiya Sanstha Ltd. has posted impressive financial results for the third quarter of the fiscal year 2081/82, showcasing a robust year-on-year growth across key financial indicators. The microfinance institution recorded a net profit of Rs. 27.11 million, marking a 20.62% increase from Rs. 22.48 million in the same quarter of the previous fiscal year.

The company’s Net Interest Income surged by a significant 56.66%, reaching Rs. 89.25 million, driven by increased lending and improved interest spreads. Correspondingly, Loans and Advances to Customers rose by 14.83% to Rs. 1.88 billion, indicating continued growth in its lending operations. Deposits from customers also grew substantially by 33.28%, totaling Rs. 403.81 million, signaling increased trust from the customer base.

While Staff Expenses climbed by 24.03% to Rs. 48.70 million, likely due to hiring and inflation adjustments, the institution managed to grow its Operating Profit by 39.54% to Rs. 41.49 million. The decline in write-backs for possible losses—down 73.92%—suggests reduced recoveries compared to the previous year but may also reflect improved portfolio quality.

One of the standout achievements for the quarter is the substantial drop in the Cost of Fund, which decreased by 26.36%, easing pressure on margins and contributing to higher profitability. However, the Non-Performing Loan (NPL) ratio increased from 2.69% to 3.01%, raising caution around credit risk as loan volumes expand.

Gurans Laghubitta’s Paid-Up Capital rose by 14.25% to Rs. 115.85 million, with Reserves & Surplus increasing by 22.25%, strengthening its financial foundation. The Capital Adequacy Ratio (CAR) stood at 8.37%, slightly up from 8.14%, remaining above the regulatory threshold.

Investor confidence appears strong, with the Quarter-End Market Price of the stock at Rs. 2,939.54, and the Price-to-Earnings (P/E) Ratio reported at 94.20 times—a reflection of high expectations but also a valuation that suggests careful scrutiny is needed.

Key Financial Highlights:

• Net Profit: Rs. 27.11 million (+20.62%)

• Net Interest Income: Rs. 89.25 million (+56.66%)

• Loans & Advances: Rs. 1.88 billion (+14.83%)

• Deposits: Rs. 403.81 million (+33.28%)

• Annualized EPS: Rs. 31.20

• Net Worth per Share: Rs. 146.26

Despite an uptick in non-performing loans, Gurans Laghubitta continues to demonstrate strong growth, improved profitability, and sound financial management, reinforcing its position as a leading player in Nepal’s microfinance sector.