Asirvad Microfinance Ltd Raises

 Asirvad Microfinance Ltd Raises US$ 15 Million Loan from WorldBusiness Capital

 

Asirvad Microfinance Ltd., India’s 4th largest NBFC MFI and a subsidiary of Manappuram Finance Ltd., has announced the closing of a US$ 15 million (Rs.111.15 crore), 7-year commercial loan from WorldBusiness Capital, Inc. based in Hartford, Connecticut (USA).

 

WBC’s loan is supported by the United States International Development Finance Corporation (DFC), the U.S. Government's developing finance institution. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. Proceeds from the loan availed under India’s ECB norms will enable Asirvad to expand its business of providing small loans to low-income women business owners in rural areas to start and expand their income-generating business. The WBC loan will be Asirvad’s 3rd long-term facility denominated in foreign currency from an international financial institution.

In a statement released to the media, Mr. Raja Vaidyanathan, MD of Asirvad Microfinance Ltd. said, “This transaction with an international institution coming at this challenging juncture certainly gives a boost to the microfinance sector and reiterates the resilience Asirvad has always shown, and the speed at which it bounces back.”

Mr. Yogesh Udhoji, CFO, Asirvad Microfinance Ltd said, "With this funding, we look forward to helping rural women with economic opportunities to transform the quality of their lives.”

 

Rob Monyak, WBC’s Executive Vice President and Chief Lending Officer for Eurasia/Africa Lending, said, “We are excited to have the opportunity to support this dynamic financial institution that has constructed a viable business model to meet the needs of woman-owned enterprises operating in rural areas.  Asirvad plays a vital role in providing this underbanked segment of the market with access to the financing they need to establish and grow their businesses.

MANAPPURAM’S Q1 NET PROFIT UP

MANAPPURAM’S Q1 NET PROFIT UP 38 PERCENT AT RS. 368 CRORE

Manappuram Finance Ltd. reported consolidated net profit of ₹ 367.97 crore in its first quarter results, an increase of 37.93 per cent over ₹ 266.78 crore recorded in the year ago quarter. Net profit in the quarter for the standalone entity (which excludes subsidiaries) is reported at ₹ 369.11 crore. Consolidated profits have declined by 7.59 per cent in comparison to the preceding quarter (Q4 of FY 2019-20), reflecting the impact of COVID-19 and the lockdowns.

Sharing the results with the media, Mr. V.P. Nandakumar, MD & CEO, said, “This was a quarter when the overall business environment was severely affected by the lockdowns. However, we were able to maintain growth in our core business of gold loans thanks to our digital infrastructure, particularly our robust online gold loan platform.”

Total consolidated operating income during the quarter stood at ₹ 1,512.53 crore, an increase of 27.03 per cent in comparison to ₹ 1,190.69 crore reported in the year ago quarter.  Consolidated assets under management (AUM) grew by 25.56 per cent to ₹ 25,345.83 crore, from ₹ 20,185.94 crore reported in the year ago quarter.

The company’s Gold loan portfolio increased by 33.44 per cent to ₹ 17,736.79 crore, from ₹ 13,292.41 crore in the year ago quarter. While the aggregate gold loans disbursed during the quarter amounted to ₹ 68,389.77 crore, new customer acquisition was affected by closure of branches due to lockdowns and stood at
0.33 lakh. The number of live gold loan customers stood at 24.9 lakhs as of June 30, 2020.

The company’s microfinance subsidiary, Asirvad Microfinance Ltd. ended the quarter with an AUM of ₹ 5,038.31 crore, a growth of 20.01 per cent compared to ₹ 4,198.30 crore recorded in the year ago quarter. With 23.55 lakh customers and 1,041 branches across 23 states/UTs, Asirvad Microfinance is now India’s fourth largest NBFC-MFI.

The company’s home loans subsidiary, Manappuram Home Finance Ltd., reported an AUM of ₹ 627.33 crore (₹ 541.66 crore) while its Vehicles & Equipment Finance division ended the quarter with an AUM of Rs. 1,270.29 crore (Rs. 1,227.08 crore). The company’s non-gold loan businesses now account for a 30 per cent share of its consolidated AUM.

Average borrowing costs for the standalone entity went down marginally by 7 bps during the quarter, to 9.39 per cent. Gross NPA stood at 1.25 per cent with Net NPA recorded at 0.70 per cent. The company’s consolidated net worth stood at ₹ 6,036.77 crore as of June 30, 2020. The book value per share stood at ₹ 71.43 and its capital adequacy ratio (for the standalone entity) was at 22.94 per cent. On a consolidated basis, the total borrowings of the company stood at ₹ 23,980.26 crore while the total number of live customers stood at 49.99 lakhs as on June 30, 2020.

Results at a glance

Consolidated (Rs. in Crore)
Particulars	Q1 FY 2021	Q1 FY 2020	YoY % Growth	Q4 FY 2020	QoQ % Growth
Income from operations	1,512.53	1,190.69	27.03%	1,605.32	-5.78%
Profit before tax	492.29	407.14	20.91%	534.07	-7.82%
Profit after tax (Before OCI & minority interest)	367.97	266.78	37.93%	398.20	-7.59%
AUM	25,345.83	20,185.94	25.56%	25,225.17	0.48%
Net Worth	6,036.77	4,715.16	28.03%	5,746.11	5.06%
Return on Assets (%)	4.8%	5.10%		5.70%
Return on Equity (%)	25%	23.28%		28.16%
No. of branches	4,616	4,380		4,622
Total no. of employees	26,633	25,985		27,767
Book value per share	71.43	55.92	27.74%	67.99	5.06%
EPS	4.35	3.16	37.61%	4.72	-7.73%
Standalone (Rs. In crore)
Particulars	Q1 FY 2021	Q1 FY 2020	YoY % Growth	Q4 FY 2020	QoQ % Growth
Profit After Tax (Before OCI)	369.11	220.30	67.54%	339.76	8.64%
AUM	19,697.98	15,535.99	26.79%	19,121.93	3.01%
Gold loan AUM	17,736.79	13,292.41	33.44%	16,967.18	4.54%
Gold Holding (Tonnes)	69.03	68.36	0.97%	72.39	-4.65%
Total Live gold loan customers (in mn.)	2.49	2.46	1.32%	2.62	-4.90%
Gold loans disbursed	68,389.77	26,396.20	159.09%	51,912.51	31.74%
Capital Adequacy Ratio	22.94%	23.44%		21.74%
Cost of Fund	9.39%	9.34%		9.46%
Gross NPA (%)	1.25%	0.71%		0.88%
Net NPA (%)	0.70%	0.45%		0.47%
Number of Branches	3,524	3,380		3,529.00
Comm. Vehicle Loans Division AUM	1,270.29	1,227.08	3.52%	1,344.35	-5.51%
Subsidiaries
Microfinance - AUM	5,038.31	4,198.30	20.01%	5,502.64	-8.44%
Home Loans - AUM	627.33	541.66	15.82%	629.61	-0.36%

Manappuram Finance Q4

Manappuram Finance Ltd. declared its results for FY 2018-19 today. The company reported a full year consolidated profit after tax of Rs 919.87 crore, a sharp increase of 36 percent over the previous year.  Consolidated net profit for the fourth quarter ended March 31, 2019 stood at Rs.255.59 crore, compared to Rs.179.05 crore booked in Q4 of the preceding year.

The Company’s operating income for the year stood at Rs. 4,116 crore, up by 20.33 percent over the previous year’s figure of Rs.3,421 crore. Profit before tax (PBT) for the fourth quarter was reported at Rs.380 crore as against Rs.276 crore in the corresponding quarter last year. The PBT for the full year increased by 37.65 percent to Rs.1,427 crore from Rs, 1,037 crore in the previous fiscal.

The Board of Directors, which met at Valapad (Thrissur) today to consider the results, approved payment of interim dividend of Rs. 0.55 per share of face value of Rs. 2/-. Accordingly, total dividend for the year amounts to Rs. 2.20 per share.

Sharing the results with the media, Mr. V.P. Nandakumar, MD & CEO, said: “Overall, this has been a very good year for us. We were able to end the year on a positive note with strong Q4 numbers.

Moreover, our new businesses have started to deliver on their potential, not only growing faster but also contributing meaningfully to profitability. We are now confident we will be able to carry the momentum into the next fiscal.”

The Company’s consolidated Assets under Management (AUM) stood at Rs. 19,438 crore, registering an impressive growth of 23.30 percent compared to Rs. 15,765 crore in the previous year. The growth was led by gold loans which grew by 10.45 percent to reach Rs.12,961.5 crore. This was enabled by growth in gold holding which went up from 64 tonnes to stand at 67.5 tonnes, an increase of 5.5 percent over the year. Aggregate gold loan disbursements during the year went up to Rs. 89,649 crore from Rs.62,155 crore in the previous year. As of March 31, 2019, the number of live gold loan customers stood at 24 lakhs.

The company’s diversification story continued to gain momentum with the contribution of non-gold businesses to overall business rising from 25.5 percent last year to 33.3 percent this year. The growth was led by the microfinance subsidiary, Asirvad Microfinance Pvt. Ltd., which ended the year with an AUM of Rs 3,841 crore, registering a growth of 57.6 percent compared to Rs. 2,437 crore reported in the previous fiscal. Accelerated growth is reported in the other new business segments too.

The Vehicle and Equipment Finance division reported strong growth with AUM at Rs.1,114.6 crore representing a growth of 78.2 percent over the year, and 14.3 percent over the third quarter.

The company’s home finance subsidiary contributed Rs. 519 Crore to the total AUM, as against Rs.375 crore in the previous year.

The company’s consolidated net worth stood at Rs. 4,525 crore as of March 31, 2019. The book value per share is Rs 52.08. Consolidated earnings per share (EPS) stands at 11.03 while the capital adequacy ratio was maintained at a high level of 23.97 percent. The net NPA position of the Company stood at 0.32 percent as of March 31, 2019.

In other developments, the Board authorized the management to explore opportunities in the micro life insurance sector. The Board also approved the takeover of the promoter led entity Manappuram Asset Finance Ltd. 

Results at a glance

Consolidated							Rs. Crore
Particulars	FY 2018-19	FY 2017-18	% growth	Q4 FY 2018-19	Q4 FY 2017-18	% growth	Q3 FY 2018-19	% growth
Income from operations	4116	3421	20.3%	1085	887	22.3%	1081	0.3%
Profit before tax	1427	1037	37.7%	380	276	37.9%	388	-2.0%
Profit after tax (After minority interest)	920	676	36.0%	256	179	42.8%	244	4.7%
AUM	19438	15765	23.3%	19438	15765	23.3%	17783	9.3%
Net Worth	4525	3813	18.7%	4525	3813	18.7%	4342	4.2%
Return on Assets (%)	4.9%	4.0%		5.2%	4.4%		5.2%
Return on Equity (%)	22.1%	17.8%		23.1%	19.3%		23.0%
No. of branches	4351	4197		4351	4197		4314
Total No. of Employees	25610	24886		25610	24886		25202
Standalone							Rs. Crore
Particulars	FY 2018-19	FY 2017-18	% growth	Q4 FY 2018-19	Q4 FY 2017-18	% growth	Q3 FY 2018-19	% growth
AUM	15109	12953	16.6%	15109	12953	16.6%	14207	6.4%
Gold loan AUM	12962	11735	10.5%	12962	11735	10.5%	12525	3.5%
Gold Holding (Tonnes)	67.5	64.0	5.5%	67.5	64.0	5.5%	66.3	1.8%
Total Live gold loan customers (in mn.)	2.4	2.3	6.9%	2.4	2.3	6.9%	2.4	0.9%
Gold loans disbursed	89649	62155	44.2%	27164	20488	32.6%	21029	29.2%
Capital Adequacy Ratio	24.0%	27.0%		24.0%	27.0%		26.4%
Cost of Fund	9.1%	8.9%		9.3%	8.7%		9.4%
Gross NPA (%)	0.55%	0.69%		0.55%	0.69%		0.58%
Net NPA (%)	0.32%	0.33%		0.32%	0.33%		0.32%
Number of Branches	3374	3330		3374	3330		3351
Comm. Vehicle Loans Division AUM	1115	625	78.2%	1115	625	78.2%	976	14.3%
Subsidiaries
Microfinance - AUM	3841	2437	57.6%	3841	2437	57.6%	3195	20.2%
Home Loans - AUM	519	375	38.5%	518.8	374.7	38.5%