1. Manappuram Declares Improved Q1 Results – Net Profit Increases by 34.3%

Manappuram Declares Improved Q1 Results – Net Profit Increases by 34.3%

Manappuram Finance Ltd. has declared improved first quarter results. Consolidated Net profit for the quarter ended June 30, 2015 is reported at Rs. 59.30 crore, an increase of 34.3 percent compared to Rs.44.15 crore recorded in Q1 of the previous fiscal year.

By: | Updated: June 12, 2017 12:35 PM

Manappuram Finance Ltd. has declared improved first quarter results. Consolidated Net profit for the quarter ended June 30, 2015 is reported at Rs. 59.30 crore, an increase of 34.3 percent compared to Rs.44.15 crore recorded in Q1 of the previous fiscal year. Total consolidated operating income during the quarter registered an increase to Rs. 539.04 crore as against Rs. 456.57 crore reported in Q1 of the previous fiscal year. The company consolidated Assets under Management (AUM) stood at Rs. 10,105 crore.

The Board of Directors, which met at Valapad (Thrissur) today to consider the results, approved payment of interim dividend of Rs. 0.45 per share of face value of Rs. 2/-.

The company also recorded a healthy increase of 17.02 percent in its gold loan Assets under Management (AUM) to Rs. 9592.44 crore in comparison to Rs.8,197.50 crore reported on June 30, 2014. Aggregate gold loans disbursed during the quarter amounted to Rs.8,188 crore. The company added 2.73 lakh new customers during the quarter taking the number of live customers to 18.13 lacs as of June 30, 2015.

Besides gold loans, the company recent diversification into new business areas is reportedly gaining traction. The company microfinance subsidiary, Asirvad Microfinance, ended the quarter with an AUM of Rs 418.31 crore, a sharp increase of 30 percent achieved in three months over the AUM of Rs.322 crore as of March 31, 2015.

Likewise, there was good pickup in growth in other new business segments too during the quarter. Commercial vehicle loans and Mortgage based finance (housing loans and loans against property) have together contributed about Rs.90 crore to the AUM. The share of new businesses in the overall AUM is showing steady increase and now stands at 5 percent. With dedicated teams from CXO level to branch managers in place, and with plans to step up presence in southern and western India, the company expects new businesses to contribute 25 percent of total AUM in the next three years.

Sharing the results with the media, Mr. V. P. Nandakumar, MD CEO, said, The significant takeaway from this performance is that Manappuram recent entry into new businesses is beginning to make worthwhile contributions to AUM and profitability. All our new venturesmdash;in microfinance, housing and vehicle loans and loans against propertymdash;have achieved substantial growth in the last quarter, and we will continue our quest to diversify and de-risk the portfolio.

The company long term credit rating was upgraded to AA- by Care. With the improved credit rating, borrowing costs continued to decline, falling by about 35 bps during the quarter. Net NPA stood at 1.01 percent. Tier I capital of the company stands at 24.44 percent in comparison to 26.63 percent reported in Q1 of previous year. The company has a network of 3,293 branches across 27 states and UTs.

Results at a glance

Consolidated Rs. in Crore
Particulars Q1-FY 2015-16 Q1-FY 2014-15 % growth
Income from operations 539.04 456.57 18.03
Profit before tax 91.88 67.02 37.09
Profit after tax 59.3 44.15 34.31
AUM 10105 8206 23.14
Aggregate Loans Disbursed 8409 5580 50.69
Net Worth 2646.67 2535.89 4.37
Return on Assets 2.01 1.81
Return on Equity 8.96 6.98
Share Capital and Reserves 2646.67 2535.9

 

Stand alone Rs. in Crore
Particulars Q1-FY 2015-16 Q1-FY 2014-15 % growth
AUM 9666 8206 17.79
Loans Disbursed 8220 5580 58.06
Capital Adequacy Ratio 24.97 27.48
Net NPA 97 114.5
Number of Branches 3293 3293

About Manappuram Finance Ltd.

Manappuram Finance Ltd. is one of India leading gold loans NBFCs engaged in providing finance against used household gold ornaments. Incorporated in 1992, the company has been promoted by Mr. V.P. Nandakumar (current MD CEO) whose family has been involved in gold loans since 1949. It is headquartered at Valapad in the Thrissur District of Kerala. The company went public in August 1995 and its shares are listed on the BSE and NSE stock exchanges.

As of June 30, 2015, Manappuram Finance Ltd. had 3,293 branches across 23 states and 4 UTs with Assets under management (AUM) of Rs.101.05 billion. The company net worth stood at Rs.26.46 billion.

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