Manappuram Finance Ltd has posted a 73.8 per cent increase in its net profit at ₹76.43 crore during the second quarter in the current fiscal compared to ₹43.98 crore in the preceding quarter ended June 30, 2014. The company’s net profit stood at ₹69.71 crore in the corresponding Q2 of FY-2013-14,.
The Board also approved an interim dividend of ₹0.45 per share of face value of ₹2.
The operating income increased to ₹ 502.84 crore against ₹456.32 crore reported in the first quarter. The same was reported at ₹544.11 crore in Q2 of the previous fiscal.
The company recorded a 4 per cent increase in its gold loan Assets under Management (AUM) to ₹8,518.03 crore against ₹ 8,197.50 crore reported in Q1 of the year. The aggregate gold loans disbursed during the quarter amounted to ₹5,835 crore.
As part of a policy decision to widen its portfolio, the company has decided to enter into housing loans, vehicle finance, and microfinance. The objective is to reduce concentration risk.
The company also restructured its top management with new appointments in the grade of Executive Vice President (EVP).
Aloke Ghosal has been appointed as CEO - Housing Finance. K. Senthil Kumar has joined as National Head - Commercial Vehicle Finance. R. Raghavender Anand has been inducted as National Head- Micro Finance.
I. Unnikrishnan has resigned from the position of Executive Director and Deputy CEO to pursue his entrepreneurial ambitions. He will be relieved from office on November 30 and will continue on the company’s Board of Directors as a Non-Executive Director.
Kapil Krishan, CFO, will now hold charge of investor relations and treasury management.
The company also signed a non-binding Term Sheet to acquire a majority equity shareholding in Asirvad Microfinance Pvt Ltd through a combination of secondary purchase of equity shares and primary investment by way of subscription to equity shares of the company.
The closure of the transaction is contingent, among other factors, upon satisfactory completion of due diligence and receipt of statutory and regulatory approvals including from RBI. Headquartered in Chennai, Asirvad Microfinance is an RBI registered NBFC-MFI. It operates in Tamil Nadu, Kerala, Odisha and Gujarat.