Manappuram Finance consolidated net up 11% to Rs 409 crore

Manappuram Finance, the main borrower of gold, on Saturday announced a consolidated net profit of Rs 409.48 crore for the quarter ended September 30, 2022, compared to Rs 369.88 crore in the year-ago quarter, registering a growth of 10.70%.

Sequentially, the Kerala-based company recorded a 45.25% increase in net profit from the previous quarter. The company’s consolidated assets under management (AUM) also increased by 7.89% to Rs 30,664.96 crore from Rs 28,421.63 crore a year ago, and slightly decreased by 0.31% from compared to the Rs 30,759.52 crore reported in the previous quarter.

Net profit of the stand-alone entity (which excludes subsidiaries) declined to Rs 348.71 crore from Rs 355 crore in the prior year quarter, but recorded a 20.20% increase sequentially. The consolidated total operating profit for the quarter stood at Rs 1,696.26 crore compared to Rs 1,531.92 crore in the prior year quarter.

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Vice Chairman Nandakumar, MD and CEO of Manappuram Finance said, “I am delighted to see that we have recorded a 45% sequential increase in profits. This is in line with our commitment to maintaining operational efficiency even as we aim for growth.

The company’s gold loan portfolio remained at Rs 19,190 crore while the number of live gold loan customers reached 24.1 lakh during this period. Manappuram’s microfinance business ended the quarter with an AUM of Rs 7,118.10 crore, an increase of 1.25% from Rs 7,029.90 crore in the prior year quarter and 8.74 %QoQ.

Its home lending subsidiary, Manappuram Home Finance, reported AUM of Rs 921.58 crore (Rs 732.19 crore in the second quarter of FY2022) recording a year-on-year growth of 25.87% while its division vehicle and equipment finance posted an AUM of Rs 1,885.53 crore (Rs 1,267.08 crore in the second quarter of FY2022) with a year-on-year growth of 48.81%.

In total, the company’s non-gold lending business accounted for a 37% share of its consolidated assets under management. Average borrowing costs for the stand-alone entity decreased by 38 basis points to 7.56% in the quarter (year-on-year). The gross NPA (standalone) was 1.95% while the net NPA was 1.77%. The consolidated net worth of the company stood at Rs 8,957.69 crore as of September 30, 2022. The book value per share was Rs 105.83 and its capital adequacy ratio (autonomous) stood at 31, 92%. On a consolidated basis, the company’s total borrowings stood at Rs 26,756.69 crore while the number of live customers stood at 5.28 million as of September 30, 2022. The board of directors approved the payment an interim dividend of 0.75 per share with a face value of Rs 2.