Nerude Mirmire Laghubitta Swings to Rs. 23.59 Crore Profit in Q4 FY 2082/83

Nerude Mirmire Laghubitta Bittiya Sanstha Limited (NMLBBL) has made a significant turnaround in the fourth quarter of fiscal year 2082/83, reporting a net profit of Rs. 23.59 crore compared to a net loss of Rs. 18.25 crore in the corresponding quarter of the previous fiscal year.

The company’s reserves and surplus declined marginally by 0.76% to Rs. 1.33 arba, while its paid-up capital remained unchanged at Rs. 1.39 arba.

During the review period, the institution recorded a decline in operating performance. Operating profit fell by 260.67% to Rs. 32.30 crore, while net interest income decreased 10.66% year-on-year to Rs. 1.29 arba. Meanwhile, personnel expenses increased 13.73% to Rs. 82.36 crore.

The institution reported negative impairment charges of Rs. 14.81 crore, which contributed to its improved bottom-line performance.

On the balance sheet side, customer deposits increased 19.15% to Rs. 7.69 arba. However, loans and advances declined marginally by 0.99% to Rs. 19.32 arba.

Asset quality showed notable improvement, with the non-performing loan (NPL) ratio falling to 19.86% from 31.64% a year earlier. Similarly, the cost of funds declined significantly to 6.27% from the previous year’s level of 31.64%.

The company’s capital adequacy ratio (CAR) improved to 9.38%, compared to 7.74% in the previous year. Meanwhile, earnings per share (EPS) turned positive at Rs. 16.88, compared to negative Rs. 13.06 a year earlier. Net worth per share also increased by 5.39% to Rs. 186.59.

At the end of the fourth quarter, NMLBBL’s shares were trading at Rs. 534.90 per share, with a price-to-earnings (P/E) ratio of 31.69 times.

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