Manappuram Finance reports 32% fall in Q1 net profit at Rs 290 crore

Manappuram Finance reports 32% fall in Q1 net profit at Rs 290 crore

Finance, primarily a gold loan company, reported a 32% fall in net profit at Rs 290 crore for the June quarter against Rs 425 crore in the year ago period amid intense competition with the gold loan space becoming more crowded.

Interest income fell at Rs 1099 crore against Rs 1233 crore. Gross profit for the period fell 32% at Rs 390 crore against Rs 570 crore.

Its consolidated net profit was even lower at Rs 282 crore against Rs 437 crore.

The net profit was however higher when compared to the fourth quarter of the last fiscal.

“In the face of intense competition, it is creditable that we have not only improved upon the performance in the preceding quarter but also managed our cost position in a competent manner,” managing director VP Nandakumar said.

The non-bank lender’s consolidated assets under management (AUM) stood at Rs 30,760 crore, registering a 24.3% year-on-year rise. The company’s standalone gold loan portfolio stood Rs 20,050 crore with its non-gold loan businesses accounting for a 34% share of its consolidated AUM. Asirvad Microfinance closed the quarter with an AUM of Rs 7,013 crore, showing a 16% annual growth.

The lender’s gross non-performing assets ratio stood at 1.43% and net NPA reported at 1.25%.

The company declared an interim dividend of Rs.0.75 per equity share of

face value Rs.2. The record date for the dividend will be August 18, 2022

Finance