Mero Microfinance Bittiya Sanstha net profit shrinks by 25.56%; EPS slips to Rs 24.16

Mero Microfinance Bittiya Sanstha Ltd. has published the report for 2nd quarter of the fiscal year 2074/75.

The company has earned a net profit of Rs 3.45 crores till the end of 2nd quarter. The net profit was Rs 4.64 crores in the corresponding quarter of the previous fiscal year. This accounts for a decline of  25.56%. MERO now has an eps of Rs 24.16 .

A massive growth is seen both in the interest income and interest expense of the company. The interest income has surged to Rs 21.96 crore, stating a growth of 44.34%. Interest expense has grown by massive 149.21% to Rs 11.66 crore. The net interest income decreased by 2.28% to Rs 10.29 crore. 

Staff expense has increased to Rs 66.67 crores, showing a growth of 63.72%. The operating expense surged by 38.74% to Rs 25.30 crores.

Company’s operating profit declined by 25.56% to Rs 5.43 crores. 

Both deposit collection and lending has shown an average growth. Deposit collection has surged to Rs 62.3 crore, up from 35.38 crore last year showing a growth of 76.10%. Company's lending has increased by 45.36% to Rs 2.66 arab.  MERO has NPL of 1.28 %

However, company’s reserve has slipped by 20.2% to Rs  98.39 crore. The company now has a networth of Rs 134.40. 

Positive sides:

• Decent growth in deposit and lending.
• NPL has decreased to 1.28%

Negative Sides:

• Hefty rise in interest expense.
• Net profit decreased by 25.25%
• Operating profit decreased to 5.43 crore.

Key Ratios:

EPS:                Rs 24.16
Networth:         Rs 134.40
Cost of Fund:   9.59%
NPL:                1.28%