Manappuram Finance has reported 34 per cent increase in its net profit at ₹59.30 crore in Q1 of FY16 against ₹44.15 crore in the corresponding period.
The total consolidated operating income registered an increase to ₹539.04 crore against ₹456.57 crore reported in Q1 of the previous fiscal. The consolidated assets under management stood at ₹10,105 crore.
The Board of Directors also approved payment of interim dividend of ₹0.45 per share of face value of ₹2.
The company also recorded a 17 per cent increase in its gold loan AUM to ₹9592.44 crore in comparison to ₹8197.50 crore. It added 2.73 lakh new customers during the quarter taking the customer base to 18.13 lakh.
Besides gold loans, the recent diversification into new business areas is reportedly gaining traction. The company’s microfinance subsidiary, Asirvad Microfinance, ended the quarter with an AUM of ₹418.31 crore, an increase of 30 per cent achieved in three months.
Commercial vehicle loans and mortgage based finance (housing loans and loans against property) have together contributed about ₹90 crore to AUM.
According to V.P. Nandakumar, MD & CEO, the company’s recent entry into new businesses is beginning to make worthwhile contributions to AUM and profitability. All the new ventures such as microfinance, housing and vehicle loans and loans against property have achieved substantial growth in the last quarter and the company will continue its quest to diversify and de-risk the portfolio.