Manappuram Finance Q3 results: Net profit rises 17% to Rs 483 crore

Manappuram Finance has reported a consolidated net profit of Rs 483.19 crore in Q3 of FY21, a significant increase of 16.64 per cent over Rs 414.26 crore recorded in the same quarter in FY20 a year ago

Net profit of the standalone entity (which excludes subsidiaries) is reported at Rs 465.29 crore.

Total consolidated operating income during the quarter stood at Rs 1643.81 crore, a growth of 14.46 per cent over Rs 1436.19 crore reported in Q3 of the previous fiscal. Consolidated assets under management (AUM) grew by 14.70 per cent to Rs 27,642.48 crore, from Rs 24,099.95 crore a year ago.

The board of directors has approved payment of an interim dividend of Rs 0.65 per share of the face value of Rs 2.

Announcing the results, Mr V.P. Nandakumar, MD & CEO, said, “Once again, our results have been in line with our guidance. During this quarter, while gold loans did well, the turnaround in our microfinance subsidiary is particularly noteworthy. We are now confident that the pandemic related woes are behind us, and look forward to good growth in all our businesses in the coming days.”

The company’s gold loan asset under management (AUM) increased by 24.43 per cent to Rs 20,211.58 crore, from Rs16,242.95 crore in the year-ago quarter. Aggregate gold loan disbursement was at Rs 57,445.14 crore while the number of live gold loan customers stood at 26.2 lakh (as of December 31, 2020).

Manappuram’s microfinance subsidiary, Asirvad Microfinance, ended the quarter with an AUM of Rs 5,357.71 crore, a growth of 6.68 per cent in comparison to the AUM of Rs 5,022.14 crore reported in the year-ago quarter. Its home loans subsidiary, Manappuram Home Finance recorded an AUM of Rs 633.44 crore while the Vehicles & Equipment Finance division reported an AUM of Rs 988.04 crore. In aggregate, the company’s non-gold loan businesses have contributed 26.88 per cent of its total consolidated AUM.

The company’s consolidated net worth stood at Rs 6,869.65 crore as on December 31, 2020. Book value per share was reported at Rs 81.19 while the total borrowings of the company amounted to Rs 23,374.38 crore.

For the standalone entity, the average borrowing cost during the quarter decreased by 18 bps to 8.95 per cent. The capital adequacy ratio stood at 25.85 per cent while the gross NPA was at 1.26 per cent and net NPA was at 0.84 per cent for the standalone entity.