Manappuram Finance Q2 net profit declines at Rs370 crore

Manappuram Finance Ltd has reported a consolidated net profit of ₹370 crore for the second quarter of FY 22. The profit is lower by 8.8 per cent compared to ₹ 405.44 crore reported in the year-ago quarter.

However, the company’s consolidated assets under management (AUM) grew by 5.7 per cent to ₹28,421.63 crore from ₹26,902.73 crores a year ago, and by 14.8 per cent in comparison to ₹24,755.99 crore reported in the preceding quarter (Q1).

Net profit for the standalone entity (which excludes subsidiaries) was at ₹355.00 crore against ₹405.56 crore in the year-ago quarter. Total consolidated operating income for the quarter amounted to ₹1,531.92 crore compared to ₹1,565.58 crores in the year ago quarter.

The Board approved payment of interim dividend of ₹ 0.75 per share with face value of ₹2.

V P Nandakumar, MD & CEO, Manappuram Finance Ltd said, “The key takeaway is the robust growth recorded during the quarter in our business volumes, be it gold loans, microfinance, or our home and vehicle loans portfolio. It reflects the emerging recovery in the rural and unorganized sectors of the economy and going forward we expect to sustain the growth along with improved profitability.”

The company’s gold loan portfolio stood at ₹18,719.53 crores, registering a strong growth of 13.2 per cent over ₹16,539.51 crores in the preceding quarter. The number of live gold loan customers increased from 24.1 lakh to 25.1 lakh in this period.

The subsidiary, Asirvad Microfinance ended the quarter with an AUM of ₹7,162.49 crore, a sharp increase of 44.1 per cent in comparison to ₹4,971.03 crore in the year ago quarter. The home loans subsidiary, Manappuram Home Finance Ltd., reported an AUM of ₹732.19 crore (₹620.62 crore in Q2 of FY2021) while its Vehicles & Equipment Finance division posted an AUM of ₹1,267.08 crore (₹1,062.28 crore in Q2 of FY2021). In aggregate, the company’s non-gold loan businesses account for a 34 per cent share of its consolidated AUM.

Average borrowing costs for the standalone entity declined by 67 basis points to 7.94 per cent during the quarter. The gross NPA (standalone) stood at 1.59 per cent with net NPA reported at 1.30 per cent The company’s consolidated net worth stood at ₹7,967.90 crores as of September 30, 2021. The book value per share was at₹94.14 and its capital adequacy ratio (standalone) stood at 31.84 per cent.

On a consolidated basis, the total borrowings of the company stood at ₹25,024.14 crores while the total number of live customers was 52.11 lakh as of September 30, 2021.