Gold loan NBFC Manappuram Finance on Thursday reported a decline in Q2 net profit to R59.21 crore from R76.52 crore a year ago. Total income increased from R504 crore for the quarter ended September 30, 2014, to R520.32 crore for the quarter ended September 30, 2015.
Consolidated net profit stood at R63.02 crore, an increase of 6.3 % from R59.30 crore in Q1 of the current fiscal year.
The company’s consolidated assets under management (AUM) stood at R10,220 crore against R10,105 crore a year ago. The board of directors, which met on Thursday to consider the results, approved payment of interim dividend of R0.45 a share of face value of R2.
Gold loan AUMs stood at R9,524 crore against R9,592 crore in the previous quarter. Aggregate gold loans disbursed during the quarter amounted to R7,981 crore against R8,188 crore in Q1.
Net NPAs fell 0.85 % from 1.01 % in the previous quarter. The company added 3.26 lakh new customers, taking the total number of live customers to 18.45 lakh.
Commenting on the results, VP Nandakumar, MD & CEO, said: “In line with our expectations, Manappuram’s new businesses are beginning to make worthwhile contributions to volumes. The new businesses have helped us to diversify and derisk the portfolio and will soon contribute to profitability as well.”
Besides gold loans, the company’s recent diversification into new business areas continued to gain traction. Put together, new businesses now contribute 6.7% of its consolidated AUM. The company’s microfinance subsidiary, Asirvad Microfinance, ended the quarter with an AUM of R538.84 crore, a significant increase of 29 % compared to R418.31 crore reported on June 30, 2015.