Mero Microfinance Laghubitta's Q3 Report: 846.30% Surge in Net Profit Fueled by Decreased Impairment Charges; EPS Rose to Rs. 12.51
Thu, May 2, 2024 9:18 AM on Financial Analysis, Company Analysis, Latest,
In its recently disclosed third-quarter report for the fiscal year 2080/2081, Mero Microfinance Laghubitta Bittiya Sanstha Limited (MERO) showcased impressive financial performance, with a remarkable 846.30% increase in net profit, soaring from Rs. 1.3 crores to Rs. 12.38 crores compared to the corresponding quarter last year.
The company experienced a notable 15.55% rise in core revenue (net interest income), reaching Rs. 60.92 crores from Rs. 52.72 crores in the same quarter of the previous year, significantly contributing to the growth in net profits.
Additionally, while deposits declined marginally by 0.82% to Rs. 3.39 Arba, loans and advances witnessed a modest uptick of 0.58%, reaching Rs. 13.99 Arba during this quarter.
During Q3, MERO reported impairment charges amounting to Rs. 3.88 Crores, reflecting a noteworthy decline of 71.25%, consequently leading to an increase in net profit.
MERO's financial position revealed a robust paid-up capital of Rs. 1.32 Arba, accompanied by reserves and surplus standing at Rs. 61.54 crores and retained earnings of Rs. 9.37 Crores.
The annualized earnings per share (EPS) stood at Rs. 12.51, with the net worth per share recorded as Rs. 153.72. Notably, MERO traded at a P/E multiple of 49.32 times during the period.
Major Financial Highlights:
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Mero Microfinance | ||
|---|---|---|---|
| Q3 2080/81 | Q3 2079/80 | Difference | |
| Paid Up Capital | 1,320,000.00 | 1,320,000.00* | 0.00% |
| Share Premium | 0.00 | 0.00 | - |
| Retained Earnings | 93,725.13 | 75,621.75* | 23.94% |
| Reserves | 615,410.37 | 506,663.16* | 21.46% |
| Deposits | 3,396,809.17 | 3,424,775.87* | -0.82% |
| Loans & Advances | 13,997,272.01 | 13,916,645.77* | 0.58% |
| Net Interest Income | 609,258.08 | 527,282.72 | 15.55% |
| Personnel Expenses | 351,873.57 | 338,953.49 | 3.81% |
| Impairment Charges/Reversal for loans and Advances | 38,807.36 | 134,980.53 | -71.25% |
| Operating Profit | 175,884.97 | 13,667.21 | 1186.91% |
| Net Profit | 123,842.45 | 13,087.00 | 846.30% |
| Distributable Profit | 93,725.48 | 0.00 | - |
| Capital Adequacy (%) | 12.70 | 12.05 | 5.39% |
| NPL (%) | 7.61 | 9.10 | -16.37% |
| Cost of Fund (%) | 9.23 | 12.53 | -26.34% |
| EPS (In Rs.) | 12.51 | 1.32 | 846.30% |
| Net Worth per Share (In Rs.) | 153.72 | 144.11 | 6.67% |
| Qtr end PE Ratio (times) | 49.32 | - | - |
| Qtr End Market Price | 617 | - | - |
