The Hindu Business Line : Manappuram General Finance net up 98% at Rs 2,099 lakh

Kochi, May 9 Manappuram General Finance and Leasing Ltd (MAGFIL), the flagship company of the Kerala-based Manappuram Group, has reported a 98 per cent increase in net profit for the year ended March 31 at Rs 2,099 lakh, compared to Rs 1,061 lakh for the previous year.

Income from operations increased 82 per cent at Rs 7,966 lakh as against Rs 4,365 lakh during the last fiscal. The profit before tax for the period amounted to Rs 3,196 lakh (Rs 1,635 lakh), signifying a positive variance of 95.5 per cent.

The consolidated net profit is Rs 2,136 lakh (Rs 1,081 lakh), which is an increase of 98 per cent over the previous year. The company also recommended a dividend of 20 per cent as against 18 per cent last year, Mr V.P.Nandakumar, Chairman of the Group, said at a press meet.

He said that the company has also proposed a Rs 100-crore equity infusion this year and is in talks with a leading global bank in this regard. Equity infusion is being planned even before the proposed merger of MAGFIL and its Manappuram Finance Tamil Nadu Pvt Ltd.

MAGFIL plans to add 250 more branches this year.

The company, which is a leading player in gold loan business, had disbursed gold loan worth Rs 1,907.78 crore to 2.55 lakh customers. It is aiming to achieve a loan book of Rs 2,000 crore in the current fiscal.

During the year, the company received foreign equity of Rs 46.8 crore from Hudson Equity Holdings (an affiliate of India Equity Partners) and Sequoia Capital, thus becoming the first NBFC from Kerala to receive FDI.

This infusion of foreign capital has helped improve the capital base of the company for expanded business operations, Mr Nandakumar said.

The company also has ambitious growth plans for unlocking the value of huge household jewellery reserves in the country.

It is estimated that 15,000 tonnes of gold is held by households and the aim is to mobilise about 10 per cent of this, he added.

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