MANAPPURAM , Q2 NET PROFIT UP 82% TO ₹402 CRORE

MANAPPURAM , Q2 NET PROFIT UP 82% TO ₹402 CRORE

MANAPPURAM SPARKLES, Q2 NET PROFIT UP 82% TO ₹402 CRORE

Chennai: Manappuram Finance Ltd. has declared a consolidated net profit of ₹402.28 crore for the quarter ended September 30, 2019, a sharp increase of 82 percent over ₹221.39 crore recorded in same quarter last year.  Net profit of the standalone entity (which excludes subsidiaries) is reported at ₹334.72 crore. Total consolidated operating income during the quarter stood at ₹1,286.78 crore, an increase of 26.85 percent over ₹1,014.44 crore reported in the year ago quarter.  Consolidated assets under management (AUM) grew by 31.91 percent to ₹22,676.93 ­­­­­­­­crore, from ₹17,190.70 crore reported in the year ago quarter.

The Board of Directors met at Valapad today to consider the results, and approved payment of interim dividend of ₹0.55 per share with face value of ₹2. Gold loan Assets under Management (AUM) increased by 20.45 percent to ₹15,168.34 crore, from ₹12,592.80 crore in the year ago quarter.  The gold loans business also added 3.62 lakh new customers, and disbursed loans worth ₹50,296.26 crore in aggregate. The number of live gold loan customers stood at 25.9 lakh as of September 30, 2019.

The company’s microfinance subsidiary, Asirvad Microfinance, ended the quarter with an AUM of ₹4,724.25 crore, a growth of 73.12 percent over the AUM of ₹2,728.94 crore recorded in the year ago quarter. Its home loans subsidiary, Manappuram Home Finance, reported an AUM of ₹567.93 crore while the Commercial Vehicles division ended the quarter with an AUM of ₹1,317.76 crore. In aggregate, the company’s non-gold loan businesses have contributed 33 percent of its total consolidated AUM. 

Sharing the results with the media, Mr. V.P. Nandakumar, MD & CEO, said, “Our Q2 performance represents continued progress along our stated objective of growth with profitability. We have achieved good increase in business volumes and profitability thanks to strong all-round performance from all our verticals. We are now well placed to keep up the momentum.”

The company’s consolidated net worth stood at ₹5,061.80 crore as of September 30, 2019. The book value per share was reported at ₹60.03 while the total borrowings of the company amounted to at ₹18,346 crore.   For the standalone entity, average borrowing cost decreased marginally by 4 bps to 9.30 percent during the quarter.  The capital adequacy ratio was at 22.66 percent while the Gross NPA position stood at 0.55 percent for the standalone entity.

Results at a glance

Consolidated (Rs. in Crore)
Particulars Q2 FY 2020 Q2 FY 2019 % Growth Q1 FY 2020 % Growth
Income from operations 1,286.78 1,014.44 26.85% 1,174.19 9.59%
Profit before tax 514.43 349.93 47.01% 414.43 24.13%
Profit after tax (After minority interest) 402.28 221.40 81.70% 268.91 49.60%
AUM 22,676.93 17,190.70 31.91% 20,185.94 12.34%
Net Worth 5,061.80 4,143.50 22.16% 4,715.16 7.35%
Return on Assets (%) 5.94% 4.80%   5.10%  
Return on Equity (%) 32.92% 21.80%   23.28%  
No. of branches 4,541 4,260   4,380  
Total no. of employees 26,392 25,104   25,985  
Book value per share 60.03 49.16 22.10% 55.92 7.35%
EPS 4.79 2.66 79.93% 3.23

 

Standalone (Rs. In crore)
Particulars Q2 FY 2020 Q2 FY 2019 % Growth Q1 FY 2020 % Growth
AUM 17,509.76 14,047.98 24.64% 15,535.99 12.70%
Gold loan AUM 15,168.34 12,592.80 20.45% 13,292.41 14.11%
Gold Holding (Tonnes) 72.03 67.38 6.90% 68.36 5.37%
Total Live gold loan customers (in mn.) 2.59 2.40 7.88% 2.46 5.16%
Gold loans disbursed 50,296.26 18,337.01 174.29% 26,396.20 90.54%
Capital Adequacy Ratio 22.66% 25.57%   23.44%  
Cost of Fund 9.30% 8.88%   9.34%  
Gross NPA (%) 0.55% 0.67%   0.71%  
Net NPA (%) 0.31% 0.19%   0.45%  
Number of Branches 3,464 3,332 3.96% 3,380 2.49%
Comm. Vehicle Loans Division AUM 1,317.76 817.23 61.25% 1,227.08 7.39%
Subsidiaries    
Microfinance – AUM 4,724.25 2,728.94 73.12% 4,198.30 12.53%
Home Loans – AUM 567.93 447.79 26.83% 541.66 4.85%

 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, 2019, the Company had 4,541 branches across 24 states and 4 UTs with Assets under management (AUM) of ₹22,676.93 crore. The company’s net worth stood at ₹5,061.80 crore.