Manappuram Finance Q3 profit up 42%

Manappuram Finance Limited posted a 42 per cent increase in its net profit for the third quarter at ₹244.11 crore compared to ₹171.73 crore in the corresponding period of the previous fiscal. The net quarterly profit of the standalone entity (which excludes subsidiaries) grew by 24.4 per cent to ₹210.83 crore.

The total consolidated operating income during the quarter stood at ₹1,081.20 crore compared to ₹872.00 crore. The consolidated assets under management grew by 21.4 per cent to ₹17,783.06 crore, against ₹14,650.16 crore. The Board of Directors approved payment of interim dividend of ₹0.55 per share of face value of ₹2.

VP Nandakumar, MD & CEO, said, “Our performance during the quarter is noteworthy not only because of the substantial growth in business volumes and profitability, but also all our new businesses have now contributed to the profits. Having begun its diversification in 2014, the company is well set to reap the rewards from here on.”

Subsidiaries

The company’s micro finance subsidiary, Asirvad Micro Finance reported a net profit of ₹33.24 crore compared to ₹2.90 crore reported in Q3 of FY18.

The home loans subsidiary, Manappuram Home Finance, reported an AUM of ₹478.00 crore over ₹342.22 crore. The commercial vehicles division ended the quarter nearly doubling its AUM to ₹975.54 crore (₹499.81 crore). In aggregate, the company’s non-gold loan businesses contributed 29.6 per cent of its total consolidated AUM.

Gold loan AUM

The Gold loan AUM went up by 10.57 per cent to ₹12,524.91 crore, from ₹11,327.08 crore in the year ago quarter.

The gold holdings have increased to 66.3 tonnes from 62.34 tonnes last year and the number of live gold loan customers stood at 23.80 lakhs as of December 31, 2018.

The average borrowing cost went up by 48 bps during the quarter, to 9.37 per cent.

The company’s consolidated net worth stood at ₹4,341.52 crore.

The book value per share stood at ₹51.51 and its capital adequacy ratio was at 26.36 per cent.