Manappuram Finance reported a 12% year-on-year increase in consolidated net profit at ₹557 crore for Q1 FY25, primarily driven by profit in its gold loan portfolio. The Kerala-based lender had posted a net profit of ₹498 crore in the same quarter last year.
Consolidated revenue from operations rose 22% to ₹2,484 crore during the April-June period. The company’s consolidated AUM grew by 21% to ₹44,932 crore, with gold loans accounting for 53%, followed by microfinance (25%), vehicle financing (10%), and MSME lending (7%). The non-gold segment now makes up 47% of the lender’s total portfolio.
“We expect the gold loan portfolio to grow over 15% this year,” said VP Nandakumar, MD & CEO, during the earnings call. He also noted that there were industry-wide collection challenges due to extreme weather events, farmer unrest in Punjab, and the general elections, though these challenges are confined to specific regions for Manappuram.
On a standalone basis, the company’s net profit grew by 16% to ₹441 crore during the latest quarter. The firm’s gross non performing assets (GNPA), on a standalone basis, increased to 2% in Q1FY25 compared to 1.4% in Q1FY24. The company’s capital adequacy ratio (standalone) stood at 31%.
In the notes to accounts, the company’s auditors pointed out cases of embezzlement involving an employee of its subsidiary, Manappuram Comptech and Consultants.
“Fraud committed by one of the employees of the company and reported on July 26, 2024, which has resulted in a claim of `19.78 crore in the company. The firm has provided for this claim in the books of account of the company for the quarter ended June 2024,” they said.