Manappuram Finance Q2 net profit increases, Declares Dividend

Valapad (Thrissur): Manappuram Finance Ltd has reported a consolidated net profit of ?572.1 crore for the second  quarter of FY25, reflecting a 2.8% increase compared to ?556.5 crore in Q1 FY25. The Non-Banking Financial Company's (NBFC) consolidated Assets Under Management (AUM) for Q2 reached ?45,716.3 crore, marking a 17.4% increase year-on-year and a 1.7% rise quarter-on-quarter. The standalone net profit for the quarter, excluding subsidiaries, was ?474.9  crore. Total consolidated operating income for the quarter was ?2,633.1 crore, a 22.1% increase from the same quarter last year. The company's consolidated gold loan portfolio saw a 17.1% increase to ?24365  crore compared to the year-ago quarter, with the number of live gold loan customers at 2.66 million as of Sept 30, 2024.

Sharing the results, Mr. V.P. Nandakumar, MD & CEO, stated, “We are pleased to report substantial growth in our gold loan AUM this quarter - 17.1% growth year-on-year and a 3% increase sequentially. Our non-gold verticals have also performed well, contributing to both AUM and net profit. Despite some headwinds, we are adequately capitalised with a capital adequacy ratio of 29.22% for the quarter ended September 2024 on standalone entity which is in line with peers and well above the regulatory requirement. Overall, it was a good quarter for our business across verticals.”

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Asirvad Microfinance Ltd concluded the quarter with an AUM of ?12,149 crore, a 10.95% growth from ?10,949.8 crore in the same period last year, and a net profit of ?75 crore. Manappuram Home Finance Ltd., the home loans subsidiary, continues its steady growth with an AUM of ?1,691.6 crore, up 29.6% year-on-year and 6.6% quarter-on-quarter. The Vehicles & Equipment Finance division's AUM reached ?4,848.2 crore, showing a significant 54.2% year-on-year increase.

The company's non-gold loan businesses now represent 46.7% of its consolidated AUM. The average borrowing cost for the standalone entity was 9.09% in Q2 FY25, compared to 8.47% in the year-ago quarter. Gross NPA stood at 2.42%, and Net NPA at  2.14%. As of September 30, 2024, the company’s consolidated net worth was ?12,528.5 crore, with a book value per share of ?148. Consolidated total borrowings were ?38,476 crore, and the total number of live customers reached 6.88 million.

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About Manappuram Finance Ltd

Manappuram Finance Ltd. is one of India’s 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 stock exchanges of Mumbai, Chennai, and Kochi.

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