What Caused Mero Microfinance Laghubitta's Net Profit to Decline by 84.37% in the First Quarter? Look at the Major Financial Highlights
Mon, Nov 14, 2022 9:14 AM on Latest, Financial Analysis, Company Analysis,
Mero Microfinance Laghubitta Bittiya Sanstha (MERO) has published its first quarterly report of FY 2079/2080 with a decrease in Net Profit by 84.37%. The company's net profit decreased to Rs. 2.55 crores as compared to Rs. 16.36 crores in the corresponding quarter of the previous year.
The borrowing of the company has decreased to Rs. 9.69 Arba by 6.70% while deposits have increased by slight 1.13% to Rs. 3.45 Arba in the current quarter. Similarly, the company has floated loans of Rs. 15.96 Arba till the first quarter of the fiscal year 2079/2080.
The net interest income of the company has decreased by 36.07% compared to the corresponding quarter of the previous year and stood at Rs. 20.16 crores in Q1. The company incurred interest expenses worth Rs. 39.29 Crores, which has increased by 80.04% as compared to relevant quarter of previous year. The rise in interest expenses has also affected the overall business volume for Q1.
Likewise, the company recorded impairment charges worth Rs. 3.74 Crores, a rise of massive 781.40%, which subsequently affected the net profit of the company for Q1 of FY 79/80.
Mero Microfinance's paid-up capital stood at Rs. 1.20 Arba with a reserve and surplus of Rs. 86.62 crores till the first quarter of the fiscal year 2079/2080.
Its annualized earnings per share (EPS) stood at Rs. 8.53 and net worth per share stood at Rs. 172.18. The company’s non-performing loan stood at 4.89%. The company traded at a PE multiple of 89.11 times till this quarter-end.
Major Highlights:
| Particulars (In Rs '000) | Mero Microfinance Laghubitta | ||
| Q1 2079/80 | Q1 2078/79 | Difference | |
| Paid Up Capital | 1,200,000.00 | 1,200,000.00 | 0.00% |
| Reserve & Surplus | 866,219.67 | 837,412.39 | 3.44% |
| Borrowings | 9,695,630.24 | 10,391,531.78 | -6.70% |
| Deposits | 3,457,829.65 | 3,419,084.46 | 1.13% |
| Loans & Advances | 15,961,326.74 | 16,407,348.69 | -2.72% |
| Interest Expenses | 392,913 | 218,240.658 | 80.04% |
| Net Interest Income | 201,655.57 | 315,441.04 | -36.07% |
| Operating Expenses | 162,870.00 | 148,439.00 | 9.72% |
| Impairment Charges/(reversal) for loans and advances | 37,476.47 | 4,251.95 | 781.40% |
| Operating Profit | 34,504.00 | 233,785.67 | -85.24% |
| Net Profit | 25,585.61 | 163,663.22 | -84.37% |
| Capital Adequacy (%) | 12.13 | 12.52 | -3.12% |
| NPL (%) | 4.89 | 4.96 | - |
| Cost of Fund (%) | 10.64 | 6.90 | 54.20% |
| EPS (In Rs.) | 8.53 | 54.55 | -84.37% |
| Net Worth per Share (In Rs.) | 172.18 | 169.78 | 1.41% |
| Qtr end PE Ratio (times) | 89.11 | - | - |
| Qtr End Market Price | 760 | - | - |
