Manappuram Finance Q1 net profit up 18.7% at ₹437 crore

Manappuram Finance Ltd reported a consolidated net profit of ₹436.85 crore in the first quarter ended June 30, an increase of 18.72 per cent over ₹367.97 crore recorded in the year ago quarter. Net profit for the standalone entity (which excludes subsidiaries) was at ₹425.21 crore. Consolidated profits were 6.7 per cent lower in comparison to the preceding quarter ended March 2021.

Total consolidated operating income during the quarter stood at ₹1,563.30 crore, an increase of 3.36 per cent against ₹ 1,512.53 crore reported in the year ago quarter. Consolidated assets under management (AUM) declined 2.33 per cent to ₹24,755.99 crore, from ₹25,345.83 crore a year ago.

The company’s gold loan portfolio posted a 6.75 per cent decline to ₹16,539.51 crore from ₹17,736.79 crore in the year ago quarter. The aggregate gold loans disbursed during the quarter amounted to ₹35,419.36 crore while the number of live gold loan customers stood at 24.1 lakhs as on June 30.

VP Nandakumar, MD & CEO, said, “We maintained our profitability in a challenging quarter that bore the brunt of the second wave when many of our branches suffered disruption due to local lockdowns. However, with the strong economic recovery now underway, we expect that the business volumes will regain growth momentum.”

The company’s microfinance subsidiary, Asirvad Microfinance Ltd closed the quarter with an AUM of ₹6,052.60 crore, a growth of 20.13 per cent.

Manappuram Home Finance Ltd reported an AUM of ₹668.19 crore, while its Vehicles & Equipment Finance division ended the quarter with an AUM of ₹1,044.79 crore.

Average borrowing costs for the standalone entity went down during the quarter by 78 basis points to 8.61 per cent compared to the year ago quarter. Gross NPA stood at 1.97 per cent with net NPA reported at 1.62 per cent. The company’s consolidated net worth stood at ₹7,662.38 crore as of June 30.