📉💔 Nerude Mirmire’s Shocking Profit Plunge! What’s Behind the Collapse? 🤔💰

Nerude Mirmire Laghubitta’s Profit Dips: Q4 Financials Reviewed

Nerude Mirmire Laghubitta has released its unaudited financial results for the fourth quarter of the last financial year. These financial statements paint a picture of challenges, with the microfinance institution (MFI) experiencing a decrease in profit. Let’s delve into the details.

The company’s net profit has fallen by 15.88%, settling at NPR 254 million. This is a noticeable drop compared to the NPR 301.9 million earned in the same period last year. The primary reason behind this decline is a significant increase in impairment charges.

While the overall profitability has decreased, there are some positive aspects to consider. Nerude Mirmire’s net interest income has seen a substantial increase, rising by 57.37% to reach NPR 1.43 billion. This indicates robust performance in its core lending activities. However, net fee and commission income has decreased by 12.88%, reaching NPR 214.7 million. Furthermore, the operating profit also declined by 8.44%, which is worth noting for potential investors.

The major driver of the profit drop is the surge in impairment charges. These charges have soared from NPR 39.6 million to NPR 304.7 million. This reflects a potential increase in the non-performing loans (NPLs) and the provisioning needed to cover potential losses.

Speaking of loan quality, the MFI’s bad debt ratio, also known as the non-performing loan ratio, has increased from 10.41% to 11.32%. This is a key financial metric that requires careful attention. Microfinance companies must keep a sharp eye on the health of their loan portfolio.

During the quarter, Nerude Mirmire Laghubitta mobilized NPR 6.45 billion in deposits and borrowed NPR 10.85 billion, resulting in a total of NPR 20.13 billion in loans and advances.

Turning to the balance sheet, the company’s paid-up capital stands at NPR 1.39 billion, with distributable profits of NPR 133.9 million. The reserve fund holds NPR 1.35 billion. The dividend capacity of the company stands at 9.58%.

A key indicator of company performance is the earnings per share (EPS). The EPS of the microfinance has fallen by NPR 13.48, settling at NPR 18.17. The net worth per share is NPR 206.77. This is an important metric for shareholders and potential investors to assess the investment potential of this microfinance company.

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