Gold loan-focused NBFC Manappuram Finance on Thursday reported a 16% year-on-year decline in net profit for the third quarter at ₹381.15 crore, weighed down by higher finance costs and increased loan loss provisions.
Interest income of the Kerala-based lender rose 7% year-on-year to ₹1,913.60 crore during the quarter. However, total expenses jumped 19% year-on-year to ₹1,411.05 crore. Finance costs increased to ₹763.42 crore from ₹628.67 crore in the same quarter last year, while impairment on financial instruments rose sharply to ₹127.95 crore from ₹77.30 crore a year earlier. Net interest income was flat at around ₹1,150 crore, compared with ₹1,161 crore in the year-ago period.
Expense Surge
At the consolidated level, Manappuram Finance reported a net profit of ₹238.5 crore, marginally lower than ₹278.46 crore recorded in the third quarter of FY25. The consolidated numbers include the performance of subsidiaries Manappuram Home Finance, Asirvad Micro Finance, Manappuram Insurance Brokers, and Manappuram Comptech and Consultants. Consolidated revenue from operations declined to ₹2,353 crore from ₹2,559 crore a year earlier.
Interim dividend
The company also declared an interim dividend of ₹0.50 per equity share, representing 25% of the face value of ₹2 per share. Shares of Manappuram Finance closed 1% higher at ₹295.10 on the NSE.