Category: Business | Market | Economy

  • Salt Trading Corporation Limited (STC) Reports Nearly Doubled Net Profit in Third-Quarter Results, Showing Strong Financial Performance

    Salt Trading Corporation Limited (STC) Reports Nearly Doubled Net Profit in Third-Quarter Results, Showing Strong Financial Performance


    Salt Trading Corporation Limited (STC) has recently published its third-quarter report for the ongoing fiscal year, revealing a nearly twofold increase in Net Profit, amounting to Rs. 3.71 crores. The company’s primary revenue source, sales, demonstrated a noteworthy growth of 17.44%, reaching Rs. 5.77 Arba. However, the selling expenses experienced a more significant surge of 21.65%, totaling Rs. 5.07 Arba during the third quarter of FY 2079/80.

    During the same period, STC observed a 12.51% rise in staff expenses and a 15.84% increase in administrative expenses compared to the corresponding quarter of FY 2078/79. On a positive note, the company’s Interest Expenses witnessed a substantial decrease of 35.44%, declining to Rs. 27.25 crores from Rs. 42.16 crores in the previous fiscal year’s third quarter. This reduction in interest expenses played a role in enhancing the company’s overall profitability.

    STC currently maintains a paid-up capital of Rs. 25.35 crores and possesses reserve and surplus funds amounting to Rs. 1.35 Arba. Additionally, the company holds property, plant, and equipment valued at Rs. 1.46 Arba, which remained relatively stable compared to the corresponding amount in the third quarter of the previous fiscal year.

    With an impressive Earnings per Share (EPS) ratio of Rs. 19.52 and a Net Worth of Rs. 632.89, STC exhibits positive financial indicators in its third-quarter report. The significant increase in Net Profit, coupled with improved revenue and reduced interest expenses, signifies the company’s strong performance and its commitment to maintaining a robust financial position.

  • Salt Trading Corporation Limited (STC) Reports Nearly Doubled Net Profit in Third-Quarter Results

    Salt Trading Corporation Limited (STC) Reports Nearly Doubled Net Profit in Third-Quarter Results


    Swabhimaan Laghubitta Bittiya Sanstha Limited (SMFBS) has recently distributed 20% bonus shares directly to the DEMAT accounts of its shareholders. The company encouraged its shareholders to dematerialize their shares in order to receive the bonus shares smoothly.

    During the 6th Annual General Meeting held on the 11th of Chaitra, the shareholders of SMFBS approved a dividend of 21.0526% amounting to Rs. 2.56 Crores for the fiscal year 2078/79. In a subsequent board of directors meeting on Magh 11, it was decided to distribute the dividend on the paid-up capital of Rs. 12.17 Crores. The proposed distribution plan included 20% bonus shares and 1.0526% cash dividend (for tax purposes).

    Following these decisions, the bonus shares have now been deposited directly to the DEMAT accounts of the shareholders. This simplifies the process for shareholders to receive and manage their bonus shares electronically, without the need for physical share certificates.

    By distributing the bonus shares to DEMAT accounts, SMFBS aims to facilitate a more efficient and secure method of shareholding for its investors. It encourages shareholders to embrace the dematerialization process and enjoy the benefits of holding their shares in electronic form.

    Overall, the distribution of 20% bonus shares to the DEMAT accounts of shareholders reflects SMFBS’s commitment to rewarding its investors and promoting the modernization of shareholding practices. It provides shareholders with the opportunity to conveniently manage their bonus shares and participate in the company’s growth and future prospects.

  • Infinity Laghubitta Bittiya Sanstha Limited Reports Decreased Net Profit in Q3, with Decline in Core Revenue and Operating Profit

    Infinity Laghubitta Bittiya Sanstha Limited Reports Decreased Net Profit in Q3, with Decline in Core Revenue and Operating Profit


    Infinity Laghubitta Bittiya Sanstha Limited (ILBS) has released its third-quarter report for the current fiscal year, showing a decreased net profit of Rs. 1.38 crores. In the corresponding quarter of the previous fiscal year, the company had recorded a profit of Rs. 11.83 crores.

    The microfinance company’s net interest income, which is its core revenue, has decreased by 24.19% to Rs. 19.30 crores in the third quarter of the current fiscal year, compared to Rs. 25.47 crores generated in the same period of FY 2078/79.

    ILBS’s operating profit has experienced a significant decline of 88.48%, amounting to Rs. 1.94 crores up to the third quarter of the ongoing fiscal year. Additionally, the non-performing loan (NPL) of the company has nearly tripled, reaching 14.04%.

    Furthermore, minor fluctuations have been observed in the company’s deposits, borrowings, and personnel expenses, with changes of -1.02%, -6.32%, and 6.77% respectively, as indicated in the third-quarter report.

    Infinity Laghubitta maintains a paid-up capital of Rs. 49.74 crores, along with Rs. 17.96 crores in the form of reserve and surplus, which includes reserves and retained earnings.

    The company’s earnings per share (EPS) ratio is lower at Rs. 3.70, while the net worth per share stands at Rs. 136.11.

    At the end of the third quarter, the company’s closing price was Rs. 644.90.

  • NMB Laghubitta Bittiya Sanstha Limited Reports Significant Decline in Net Profit for Q3 FY 2079/80

    NMB Laghubitta Bittiya Sanstha Limited Reports Significant Decline in Net Profit for Q3 FY 2079/80


    NMB Laghubitta Bittiya Sanstha Limited (NMBMF) has released its third-quarter report for the fiscal year 2079/80, revealing a significant decline in net profit. The company’s net profit stood at Rs. 1.15 crores, representing a decrease of 89.80% compared to the same quarter of the previous fiscal year.

    Personnel expenses reported by the company for the first three quarters of the current fiscal year witnessed a slight increase of 5%, totaling Rs. 17.14 crores. Meanwhile, the operating profit experienced a substantial decline of 90% and reached Rs. 1.61 crores during the same period. The net interest income, which represents the core revenue of the microfinance institution, also decreased to Rs. 25.96 crores, reflecting a decline of 25.85% compared to the corresponding quarter of FY 078/79.

    However, concerning financial performance, NMBMF faced challenges as the non-performing loan (NPL) ratio more than doubled, reaching 8.97%. This increase indicates a higher proportion of loans in default or showing signs of financial distress.

    In terms of earnings per share (EPS), the company reported a slump to Rs. 2.34, while the net worth per share stood at Rs. 164.73 for NMBMF.

    At the end of the third quarter of the current fiscal year, the quarter-end price of NMBMF’s shares was Rs. 525.

  • NIC Asia Bank Limited Initiates Auction of 345,680 Promoter Shares to General Public

    NIC Asia Bank Limited Initiates Auction of 345,680 Promoter Shares to General Public


    Promoters of NIC Asia Bank Limited (NICA) have initiated an auction to sell 345,680 units of their promoter shares to the general public. The auction period will run from the 2nd of Jestha to the 9th of Jestha, 2080.

    The auction is open to individual investors, companies, and institutions, with a minimum bid rate of Rs. 365. Interested bidders must submit a minimum bid quantity of 1000 units for the promoter shares. While bidders can bid for the entire issue, they must comply with the regulations set by the Nepal Rastra Bank, which restrict the quantity of shares per entity.

    NIBL Ace Capital Limited has been appointed as the auction manager for this process. Bids will be opened at the premises of the auction manager on the 10th of Jestha, 2080, at 3 PM.

    As of the time of writing, the Last Traded Price (LTP) of NICA stands at Rs. 694.60.

  • Prabhu Capital Limited and Century Capital Markets Join Forces for an Epic Financial Venture

    Prabhu Capital Limited and Century Capital Markets Join Forces for an Epic Financial Venture


    Prabhu Capital Limited and Century Capital Markets have officially commenced their joint operation on Jestha 01, 2080, following a successful acquisition. The acquisition was approved by the Office of the Registrar and regulatory bodies, as confirmed through a letter issued on Baisakh 26, 2080. The two companies will now conduct their business together under the unified name of “Prabhu Capital Limited.”

    Prior to the merger, both Prabhu Capital Limited and Century Capital Markets held separate Special General Meetings (SGMs) to obtain endorsement for a share swap ratio of 1:1. This ratio indicates that shareholders of both companies received equal shares in the merged entity. As a result, the registered office of the merged company, Prabhu Capital Limited, will be situated in Kamaladi, Kathmandu.

    The joint operation of Prabhu Capital Limited marks a significant milestone in the financial market, bringing together the expertise and resources of both entities. The merger is expected to enhance their capabilities and expand their reach to provide comprehensive services to clients in the Nepalese market.

  • Jyoti Bikas Bank (JBBL) Distributes 3% Bonus Shares and Encourages Dematerialization

    Jyoti Bikas Bank (JBBL) Distributes 3% Bonus Shares and Encourages Dematerialization


    Jyoti Bikas Bank Limited (JBBL) has recently provided 3% bonus shares directly to the DEMAT accounts of its shareholders and has urged them to convert their physical shares into electronic form through dematerialization. The bank’s move aims to facilitate seamless share transactions and promote the modernization of shareholding processes.

    During the bank’s 15th Annual General Meeting (AGM) held on the 14th of Falgun, a dividend of 6.80% amounting to Rs. 29.02 crores was endorsed for the fiscal year 2078/79. The dividend distribution decision was made during the 440th board of directors meeting on Poush 22. Based on the bank’s paid-up capital of Rs. 4,26,77,53,287, the proposed distribution includes 3% bonus shares valued at Rs. 12.80 crores and a 3.80% cash dividend (intended for tax purposes) totaling slightly over Rs. 16.21 crores. It is important to note that the bonus shares have already been listed on the Nepal Stock Exchange (NEPSE).

    JBBL has also requested its shareholders to pay the applicable tax amount for the 11% bonus shares proposed during the fiscal year 2077/2078, including the cash dividend approved during the 15th AGM. Shareholders can find detailed information regarding the tax amount they are required to pay on the website of the share registrar, NIBL Ace Capital Limited.

    By distributing bonus shares and emphasizing the dematerialization process, JBBL demonstrates its commitment to providing value to its shareholders and keeping up with technological advancements in the financial industry. The bank’s efforts aim to enhance efficiency, transparency, and convenience for its shareholders.

  • Mahila Laghubitta Bittiya Sanstha Limited Reports Decline in Q3 Profits

    Mahila Laghubitta Bittiya Sanstha Limited Reports Decline in Q3 Profits


    Mahila Laghubitta Bittiya Sanstha Limited (MLBSL) has released its third-quarter report for the fiscal year 2079/2080, revealing a net profit of Rs. 5.24 crores. This marks a significant decline of 52.80% compared to the corresponding quarter of the previous fiscal year, which reported a net profit of Rs. 11.11 crores.

    MLBSL has witnessed a substantial increase in impairment charges, rising by 604.13% to reach Rs. 3.26 crores until the end of Q3 in the current fiscal year. Additionally, the Non-Performing Loan (NPL) of the company has surged, reaching 9.80% in the third quarter of FY 2079/80. It can be inferred that higher impairment charges and NPL have adversely affected the company’s profitability.

    On a different note, MLBSL’s net interest income, which represents its core revenue, has experienced a slight decline of 3.57% and amounts to Rs. 20.58 crores until the end of Q3 in FY 2079/80. Meanwhile, the company’s personnel and staff expenses have increased to Rs. 12.59 crores, reflecting a growth of 22.52% compared to the third quarter of FY 2078/79.

    MLBSL has successfully raised its paid-up capital by 47.50%, totaling Rs. 21.75 crores. The company also maintains a reserve and surplus, comprising reserves and retained earnings, amounting to Rs. 22.46 crores.

    With an Earnings per Share (EPS) of Rs. 32.17, MLBSL showcases its profitability per share. The Net Worth per Share of the company stands at Rs. 203.24, indicating its value per share based on its net worth.

    Overall, MLBSL’s Q3 report demonstrates a decline in profits, driven by increased impairment charges and NPL. The company also faces challenges related to net interest income and rising personnel expenses. However, it has managed to strengthen its financial position through an increase in paid-up capital and maintains a favorable EPS and net worth per share.

  • Balephi Hydropower’s Challenging Q3: Net Losses, Administrative Expenses Surge, and Strategies for Financial Recovery

    Balephi Hydropower’s Challenging Q3: Net Losses, Administrative Expenses Surge, and Strategies for Financial Recovery


    Balephi Hydropower Limited (BHL) has released its third-quarter report for the current fiscal year, revealing a significant net loss of Rs. 23.72 crores. In comparison, during the third quarter of the previous fiscal year 2078/79, the company had reported a net loss of Rs. 6.06 lakhs.

    During the third quarter of the current fiscal year, BHL experienced a substantial increase in administrative expenses, reaching Rs. 25.59 lakhs. Additionally, the company had to bear financial costs amounting to Rs. 31.19 crores up to the third quarter of FY 079/80.

    With an Earnings per Share (EPS) of Rs. -17.30 and a below-average net worth of Rs. 81.93, BHL faces financial challenges. However, the company managed to generate revenue of Rs. 35.93 crores from the sale of power until the end of the third quarter of the ongoing fiscal year.

    According to the management analysis, BHL incurred significant penalties from the Nepal Electricity Authority (NEA) for surpassing the Required Commercial Operation Date (RCOD) as outlined in the Power Purchase Agreement (PPA).

    BHL is optimistic that once the RCOD issue is resolved, the company will generate sufficient cash revenue to meet its financial and operational obligations. To improve its cash flow, the company plans to issue right shares.

    In a meeting held on Falgun 12, 2079, the board of directors of BHL decided to propose the issuance of rights shares in a ratio of 1:0.5 in the next annual general meeting. The proposal aims to utilize the then-paid-up capital of Rs. 1.827 Arba, resulting in an enhanced paid-up capital of Rs. 2.74 Arba after the 50% right issue.

    At the end of the third quarter of this fiscal year, BHL’s closing share price stood at Rs. 321. Additionally, the company successfully increased its paid-up capital by 10.50%, amounting to Rs. 1.82 Arba.

  • Sagarmatha Lumbini Insurance Company (SALICO) Lists 26,226,382 Shares After Merger of SIC and LGIL

    Sagarmatha Lumbini Insurance Company (SALICO) Lists 26,226,382 Shares After Merger of SIC and LGIL


    Sagarmatha Lumbini Insurance Company Limited (SALICO) has listed 26,226,382 shares on the Nepal Stock Exchange (NEPSE) following a successful merger between Lumbini General Insurance Limited (LGIL) and Sagarmatha Insurance Company Limited (SIC).

    The merger agreement between SIC and LGIL was signed on 30 Ashad, 2079. The swap ratio for the merger was set at 100:80, resulting in a 20% decrease in the number of LGIL shareholders. After the merger, the total listed shares of SIC and LGIL combined amounted to 26,226,382 units.

    Following the successful merger, SIC and LGIL began conducting joint operations under the name Sagarmatha Lumbini Insurance Company Limited (SALICO) starting from Falgun 29, 2079. Consequently, the listed shares will be traded under the symbol “SALICO.”

    The opening price range for the initial transactions has been set at Rs. 599.12.

  • Taragaon Regency Hotel Reports Staggering 476.52% Surge in Net Profit for Q3 2079/80

    Taragaon Regency Hotel Reports Staggering 476.52% Surge in Net Profit for Q3 2079/80


    Taragaon Regency Hotel (TRH) has released its third-quarter report for the fiscal year 2079/80, showcasing a remarkable surge in Net Profit by 476.52% compared to the corresponding quarter of the previous fiscal year. The company has achieved an impressive Net Profit of Rs. 23.88 crores.

    TRH, the operator of Hyatt Regency Hotel, has also experienced growth in investments, increasing them by 27% and reaching a total investment value of Rs. 1.32 Arba.

    Furthermore, the company has witnessed a significant increase in revenue from its operations, with a rise of 116.64% to Rs. 90.61 crores in the third quarter of the current fiscal year, contributing to its overall profitability.

    With a paid-up capital of Rs. 1.88 Arba, TRH has added 82.79% to its reserves, amounting to Rs. 51.39 crores, indicating a favorable financial position for the company.

    TRH maintains an impressive Earning per Share (EPS) of Rs. 16.88, surpassing the previous EPS of Rs. 2.93.

    Similarly, Taragaon Regency Hotel boasts a Net Worth per Share of Rs. 127.24 and a Price per Earning (P/E) Ratio of 27.55 times.

    Meanwhile, the closing price of the company’s shares stood at Rs. 465 at the end of the third quarter of the current fiscal year.

  • RBB Merchant Banking Closes RBB Mutual Fund 2 Issue to General Public

    RBB Merchant Banking Closes RBB Mutual Fund 2 Issue to General Public


    RBB Merchant Banking Limited has concluded the public offering of its mutual fund scheme, “RBB Mutual Fund 2,” on the specified date of 31st Baisakh. The offering, which initially opened on the 17th Baisakh and was intended to close on the 21st Baisakh, had been extended due to an insufficient number of applications.

    Out of a total of 12 crore unit shares, the fund sponsor, Rastriya Banijya Bank Limited, has been allocated 15% or 1.80 crore units worth Rs. 18 crores. The remaining 10.20 crore units were made available to the general public.

    As reported by CDSC (Central Depository System and Clearing Ltd.), as of 5 PM last Friday, a total of 15,651 applicants have applied for 46,046,424 units worth Rs. 46.04 crores.

    “RBB Mutual Fund 2” is a closed-end fund that will be traded on the Nepal Stock Exchange (NEPSE) and has a maturity period of 10 years. Interested applicants were able to apply for a minimum of 100 units up to a maximum of 12,000,000 units.

    RBB Merchant Banking Limited currently manages another closed-end fund, RBB Mutual Fund 1 (RMF1), in the market.