Next level · Reports
How to Read a Quarterly Report
The five numbers to check first, extra ratios for banks, a worked example and red flags.
On this page · विषयसूची
1. Why quarterly reports matter
Every listed company publishes an unaudited quarterly report (त्रैमासिक प्रतिवेदन) four times a year. It shows how much the company earned in the quarter and the year so far. Share prices often move after these reports, so learning to read one is a big step.
Find them on the company's website, NEPSE's site and financial news portals, usually within about a month after each quarter ends (Asoj, Poush, Chaitra, Ashad).
2. The five numbers to check first
- Net profit this year so far, compared with the same period last year (year-on-year growth).
- Annualised EPS: EPS for the year so far scaled to a full year. Q2 EPS × 2, Q3 EPS × 4/3.
- P/E using today's price ÷ annualised EPS, compared with similar companies.
- Net worth per share (book value) and whether it is rising.
- Distributable profit: profit the company can actually pay as dividend after required reserves. Low distributable profit means a small dividend, even with good net profit.
3. Extra numbers for banks and finance companies
| Ratio | Meaning | What is good |
|---|---|---|
| NPL (non-performing loans) | Share of loans not being repaid | Low and not rising |
| CAR (capital adequacy ratio) | How much capital protects depositors | Comfortably above NRB's minimum |
| Net interest income | Interest earned minus interest paid | Growing steadily |
| Cost of fund, base rate | What the bank pays for deposits | Falling cost of fund helps profit |
Hydropower: look at electricity sales (generation), finance cost (loan interest) and any plant shutdowns. Insurance: premium growth and investment income.
4. A worked example
Example (round numbers for learning): after Q2, a bank's net profit is Rs. 150 crore with 10 crore shares. EPS so far = Rs. 15, so annualised EPS = 15 × 2 = Rs. 30. If the share price is Rs. 450, P/E = 450 ÷ 30 = 15. Last year's Q2 profit was Rs. 120 crore, so profit grew 25%.
5. Red flags
- Profit up only because of a one-time gain (sale of an asset, write-back) while core income fell.
- NPL rising fast, or CAR close to the minimum.
- Net profit good but distributable profit very low.
- Big jumps in "other income" every quarter.
- The share price already rose far more than the profit growth.
Rules and rates checked October 2026. They change from time to time; confirm with your broker, your DP or SEBON before acting.