Kathmandu- Support Laghubitta Bittiya Sanstha Limited has recorded a significant improvement in its financial performance, with net profit rising by more than 104 percent in the first half of the current fiscal year. According to the unaudited financial statements for the second quarter, the microfinance institution earned a net profit of Rs 31.7 million during the review period, compared to Rs 15.5 million in the same period of the previous fiscal year.
The sharp rise in profit has been supported by strong growth in core income indicators. During the review period, the company’s net interest income increased by 73.20 percent, reflecting expansion in lending activities and improved interest earnings. Other operating income also grew by 11.90 percent. As a result, total operating income increased by 60.21 percent, while operating profit rose by 73.83 percent compared to the corresponding period of last fiscal year.
The company’s earnings indicators have also strengthened alongside profit growth. Earnings per share increased from Rs 26.55 to Rs 51.87 during the review period. With a distributable profit of Rs 44 million, the distributable earnings per share stands at Rs 71.92. As of mid-December, the price-earnings ratio of Support Laghubitta is 34.37 times, indicating investor expectations linked to its improved performance.
On the balance sheet side, the net worth per share of the microfinance institution has reached Rs 189.1. The company currently has a paid-up capital of Rs 122.4 million and has accumulated Rs 108.9 million in its reserve fund, further strengthening its capital position. The impairment charge recorded as of the second quarter of the previous fiscal year stood at Rs 1.665 million.
Overall, the latest financial results show that Support Laghubitta’s profit growth has been accompanied by improvements in income generation, earnings capacity and capital strength, pointing to a broader improvement in its financial health rather than profit growth alone.
