Mannappuram Q2 Net Profit up

MANAPPURAM’S Q2 NET PROFIT UP 40 PERCENT AT RS. 221.39 CRORE

Manappuram Finance Ltd. has declared its second quarter results. Consolidated net profit for the quarter ended September 30, 2018 was reported at Rs. 221.39 crore, a jump of 40 percent over Rs. 158.20 crore recorded in Q2 of the previous fiscal.  Net profit for the quarter of the standalone entity (which excludes subsidiaries) is reported at Rs. 192.75 crore.

Total consolidated operating income during the quarter stood at Rs. 1014.44 crore, an increase of 22.13 percent in comparison to Rs. 830.62 crore reported in the year ago quarter.  Consolidated assets under management (AUM) grew by 25.27 percent to Rs.17,190.70 ­­­­­­­­crore, from Rs. 13,723.20 crore reported in the year ago quarter.

The Board of Directors, which met at Valapad today to consider the results, approved payment of interim dividend of Rs. 0.55 per share of face value of Rs. 2/-

The company’s Gold loan Assets under Management (AUM) went up by 17.02 percent to Rs.12,592.80 crore, from Rs.10,760.91 crore in the year ago quarter.

The gold loans business also added 3.65 lakh new customers while the aggregate gold loans disbursed during the quarter amounted to Rs. 18,337.01 crore. The number of live gold loan customers stood at 24 lakhs as of September 30, 2018.

The company’s microfinance subsidiary, Asirvad Microfinance, ended the quarter with an AUM of Rs.2,728.94 crore, a growth of 38.91 percent over Rs.1,964.58 crore recorded in the year ago quarter. Its home loans subsidiary, Manappuram Home Finance Pvt. Limited, reported an AUM of Rs 447.79 crore (Rs. 326.58 crore) while its Commercial Vehicles division ended the quarter with an AUM of Rs. 817.23 crore (Rs. 419.09 crore). In aggregate, the company’s non-gold loan businesses have contributed 26.7percent of its total consolidated AUM. 

Sharing the results with the media, Mr. V.P. Nandakumar, MD & CEO, said, “Our performance during the quarter builds well upon the base established by our first quarter results and we remain on course to deliver good growth and profitability in the current year.”

In keeping with recent trends, average borrowing costs went up marginally by 11 bps during the quarter, to 8.88 percent.  The company’s consolidated net worth stood at Rs 4,143.50 crore as of September 30, 2018. The book value per share stood at Rs. 49.16 and its capital adequacy ratio was at 25.97 percent.

The total borrowings of the company amounted to at Rs. 14,035 crore while the total number of live customers stood at 24 lakhs as on September 30, 2018.

Results at a glance

Consolidated	Rs. in Crore
Particulars	Q2 FY 2019 (IND AS)	Q2 FY 2018 (IND AS)	% Growth
Income from operations	1014	831	22.13%
Profit before tax	350	241	45.16%
Profit after tax (After minority interest)	221	158	39.94%
AUM	17191	13723	25.27%
Net Worth	4144	3575	15.91%
Return on Assets (%)	4.80%	4.32%	--
Return on Equity (%)	21.80%	18.20%	--
No. of branches	4260	4146	--
Total No. of Employees	25104	24995	--

Stand alone	Rs. in Crore
Particulars	Q2 FY 2019 (IND AS)	Q2 FY 2018 (IND AS)	% Growth
AUM	14014	11432	22.58%
Gold loan AUM	12593	10761	17.02%
Gold Holding (Tonnes)	67.4	59.8	12.71%
Total Live gold loan customers (in lakhs)	2.40	2.16	11.17%
Comm. Vehicle Loans AUM	817	419	95.00%
Gold loans disbursed	18337	12816	43.08%
Capital Adequacy Ratio	25.97%	28.76%	--
Cost of Fund	8.90%	8.80%	--
Gross NPA (%)	0.67%	1.17%	--
Net NPA (%)	0.19%	0.89%	--
Number of Branches	3330	3298	--
Subsidiaries
Microfinance - AUM	2729	1965	38.91%
Home Loans - AUM	448	327	37.11%

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 BSE and NSE stock exchanges.   

As of September 30, 2018, the Company had 4260 branches across 24 states and 4 UTs with Assets under management (AUM) of Rs 17,190.70 crore. The company’s net worth stood at Rs. 4,143.50 crore.