Manappuram Finance Ltd. reported a consolidated net profit of Rs 369.88 crore for the quarter ending September 30, 2021. The profit is lower by 8.8% compared to Rs 405.44 crore reported in the year-ago quarter. However, the company’s consolidated assets under management (AUM) grew by 5.7% to Rs 28,421.63 crore from Rs 26,902.73 crore a year ago, and by 14.8% in comparison to Rs 24,755.99 crore reported in the preceding quarter (Q1).
Net profit for the standalone entity (which excludes subsidiaries) was at Rs 355.00 crore as against Rs 405.56 crore in the year-ago quarter. Total consolidated operating income for the quarter amounted to Rs 1,531.92 crore compared to Rs 1,565.58 crore in the year-ago quarter.
The Board of Directors met at Mumbai today to consider the results and approved payment of an interim dividend of Rs 0.75 per share with a face value of Rs 2.
Commenting about the V.P. Nandakumar, MD & CEO, said, “The key takeaway is the robust growth recorded during the quarter in our business volumes, be it gold loans, microfinance, or our home and vehicle loans portfolio. It reflects the emerging recovery in the rural and unorganized sectors of the economy and going forward we expect to sustain the growth along with improved profitability.”
The company’s gold loan portfolio stood at Rs 18,719.53 crore, registering a strong growth of 13.2%, over Rs 16,539.51 crore in the preceding first quarter. The number of live gold loan customers increased to 25.1 lakh from 24.1 lakh in the first quarter.
Manappuram’s microfinance subsidiary, Asirvad Microfinance Ltd. ended the quarter with an AUM of Rs 7,162.49 crore, a sharp increase of 44.1% in comparison to Rs 4,971.03 crore in the year-ago quarter. With 25.7 lakh customers and 1,334 branches across 23 states and UTs, Asirvad Microfinance is now India’s fourth-largest NBFC-MFI.
The company’s home loans subsidiary, Manappuram Home Finance Ltd., reported an AUM of Rs 732.19crore (Rs 620.62 crore Q2 FY 21) while its Vehicles & Equipment Finance division posted an AUM of Rs 1,267.08 crore (Rs 1,062.28 crore in Q2 of FY 2021). In aggregate, the company’s non-gold loan businesses account for a 34% share of its consolidated AUM.
Average borrowing costs for the standalone entity declined by 67 basis points during the quarter,to 7.94%. The gross NPA (Standalone) stood at 1.59% with net NPA reported at 1.30%. The company’s consolidated net worth stood at Rs 7,967.90 crore as of September 30, 2021. The book value per share stands at Rs Rs94.14 and its capital adequacy ratio (standalone) was at 31.84%. On a consolidated basis, the total borrowings of the company stood at Rs 25,024.14 crore while the total number of live customers stood at 52.11 lakhs as of September 30, 2021.
In October 2021, International rating agency S&P upgraded the long-term issuer credit rating of Manappuram Finance Limited from “B+” to “BB-” with stable outlook. The rating agency also affirmed the ‘B’ short-term issuer credit rating on the company.
