Mero Microfinance Unveils Q4 Report with 362.59% Increase in Net Profit; EPS Reached to Rs. 16.63
Wed, Aug 7, 2024 8:50 AM on Financial Analysis, Company Analysis, Latest,
In its recently disclosed fourth-quarter report for the fiscal year 2080/2081, Mero Microfinance Laghubitta Bittiya Sanstha Limited (MERO) demonstrated an impressive financial performance, reporting a remarkable 362.59% increase in net profit. The net profit surged from Rs. 4.74 crores to Rs. 21.95 crores compared to the same quarter last year.
MERO experienced a significant 14.06% rise in core revenue (net interest income), which increased to Rs. 87.48 crores from Rs. 76.7 crores in the corresponding quarter of the previous year, substantially contributing to the growth in net profits.
Additionally, while deposits saw a marginal decline of 0.49% to Rs. 3.40 Arba, loans and advances experienced a slight decrease of 0.48%, reaching Rs. 13.85 Arba during this quarter.
In Q4, MERO reported impairment charges amounting to Rs. 1.94 crores, reflecting a significant decline of 84.48%, which positively impacted the net profit.
MERO's financial position showed a paid-up capital of Rs. 1.32 Arba, reserves and surplus at Rs. 69.27 crores, and retained earnings of Rs. 19.62 crores.
The annualized earnings per share (EPS) stood at Rs. 16.63, with a net worth per share of Rs. 160.53. During this period, MERO traded at a P/E multiple of 42.08 times.
Major Financial Highlights:
* Figures are of Immediate Previous Year Quarter Ending
| Particulars (In Rs '000) | Mero Microfinance | ||
|---|---|---|---|
| Q4 2080/81 | Q4 2079/80 | Difference | |
| Paid Up Capital | 1,320,000.00 | 1,320,000.00* | 0.00% |
| Share Premium | 0.00 | 0.00 | - |
| Retained Earnings | 196,231.93 | 75,621.75* | 159.49% |
| Reserves | 602,744.05 | 506,663.16* | 18.96% |
| Deposits | 3,407,984.07 | 3,424,775.87* | -0.49% |
| Loans & Advances to Customers | 13,850,160.50 | 13,916,645.77* | -0.48% |
| Borrowings | 8,368,320.72 | 8,605,107.40* | -2.75% |
| Net Interest Income | 874,847.97 | 767,016.03 | 14.06% |
| Personnel Expenses | 479,674.93 | 482,917.87 | -0.67% |
| Impairment Charges | 19,469.87 | 125,420.33 | -84.48% |
| Operating Profit | 313,117.52 | 69,161.89 | 352.73% |
| Net Profit | 219,573.13 | 47,466.46 | 362.59% |
| Distributable Profit | 196,231.93 | 0.00 | - |
| Capital Adequacy (%) | 13.31 | 12.66 | 5.13% |
| NPL (%) | 7.68 | 5.84 | 31.51% |
| Cost of Fund (%) | 7.94 | 11.11 | -28.53% |
| EPS (In Rs.) | 16.63 | 3.60 | 362.59% |
| Net Worth per Share (In Rs.) | 160.53 | 144.11 | 11.39% |
| Qtr end PE Ratio (times) | 42.08 | - | - |
| Qtr End Market Price | 700 | - | - |
