Manappuram Finance posts 37% rise in Q2 profit at ₹561 crore

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Manappuram Finance has reported a consolidated net profit at ₹561 crore in Q2 of FY24 against ₹410 crore in the corresponding period of the previous fiscal, an increase by 37 per cent.

The NBFC’s consolidated assets under management (AUM) for Q2 stood at ₹38,950 crore, registering an increase of 27 per cent over the corresponding quarter of FY23. Net profit in the quarter for the standalone entity (which excludes subsidiaries) was reported at ₹420 crore.

Total consolidated operating income during the quarter stood at ₹2,157 crore, an increase of 27 per cent from the year-ago quarter. The company’s consolidated gold loan portfolio posted an increase of 8.4 per cent to ₹20,809 crore. The number of live gold loan customers stood at 2.5 million as on September 30, 2023.

VP Nandakumar, MD and CEO, said, “In the second quarter too, we have continued to make gains in profitability as well as AUM. In tune with our aim of becoming a well-diversified entity, we are increasing our presence in the non-gold businesses, especially microfinance and vehicles and equipment.”

Asirvad Microfinance Ltd, a subsidiary of Manappuram closed the quarter with an AUM of ₹10,950 crore, a growth of 43 per cent over ₹7,661 crore recorded, in the year-ago quarter. The home loans subsidiary, Manappuram Home Finance Ltd., has been showing a steady growth with an AUM of ₹1,305 crore, which is up by 41.6 per cent year-on-year. The Vehicles & Equipment Finance division ended the quarter with an AUM of ₹3,143 crore, registering an increase of 66.7 per cent year-on-year.

The company’s non-gold loan businesses now account for a 47 per cent per cent share of its consolidated AUM. Average borrowing costs for the standalone entity is 8.5 per cent in Q2 FY23 vs. 7.6 per cent in the year-ago quarter. Gross NPA stood at 1.6 per cent and Net NPA reported at 1.4 per cent The company’s consolidated net worth stood at ₹10,572 crore as of September 30, 2023.

On a consolidated basis, the total borrowings of the company stood at ₹32,237 crore while the total number of live customers stood at 6.4 million as on September 30, 2023.