Mero Microfinance Laghubitta Bittiya Sanstha Limited (MERO) has unveiled its third-quarter financial report for the fiscal year 2080/2081, revealing an impressive surge in performance. The company has reported 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.
A significant contributor to this exceptional financial performance is the notable 15.55% rise in core revenue (net interest income), which reached 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.
Furthermore, while deposits witnessed a marginal decline of 0.82% to Rs. 3.39 Arba, loans and advances experienced 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, marking 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.