Manappuram Finances Ltd., reported consolidated net profit of Rs. 367.97 cr in its first-quarter results, an increase of 37.93% over Rs. 266.78 cr recorded in the year-ago quarter. Net profit in the quarter for the standalone entity (which excludes subsidiaries) is reported at Rs. 369.11 cr. Consolidated profits have declined by 7.59% in comparison to the preceding quarter (Q4 of FY 2019-20), reflecting the impact of COVID-19 and the lockdown.
Sharing the results with the media, 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 Rs. 1,512.53 cr, an increase of 27.03% in comparison to Rs. 1,190.69 cr reported in the year ago quarter. Consolidated assets under management (AUM) grew by 25.56% to Rs. 25,345.83 cr, from Rs. 20,185.94 cr reported in the year ago quarter.
The company’s Gold loan portfolio increased by 33.44% to Rs. 17,736.79 cr from Rs. 13,292.41 cr in the year ago quarter. While the aggregate gold loans disbursed during the quarter amounted to Rs. 68,389.77 cr, 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 Rs. 24.9 lakhs as of June 30, 2020.
The company’s microfinance subsidiary, Asirvad Microfinance Ltd. ended the quarter with an AUM of Rs. 5,038.31 cr, a growth of 20.01% compared to Rs. 4,198.30 cr recorded in the year ago quarter. With Rs. 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 Rs. 627.33cr (Rs. 541.66 cr) while its Vehicles & Equipment Finance division ended the quarter with an AUM of Rs. 1,270.29 cr (Rs. 1,227.08 cr). The company’s non-gold loan businesses now account for a 30% share of its consolidated AUM.
Average borrowing costs for the standalone entity went down marginally by 7 bps during the quarter, to 9.39%. Gross NPA stood at 1.25% with Net NPA recorded at 0.70%. The company’s consolidated net worth stood at Rs. 6,036.77 crore as of June 30, 2020. The book value per share stood at Rs. 71.43 and its capital adequacy ratio (for the standalone entity) was at 22.94%. On a consolidated basis, the total borrowings of the company stood at Rs. 23,980.26 cr while the total number of live customers stood at Rs. 49.99 lakhs as on June 30, 2020.