Manappuram Finance Q1 net rises 26% to Rs 417 crore

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Manappuram Finance on Tuesday reported a nearly 26% rise in its consolidated net profit at Rs 417 crore for the first quarter of the current fiscal year 2021-22 on healthy growth in interest income aided by a fall in borrowing cost.

The company had posted a net profit of Rs 332 crore in the same quarter ended June 2020. Income from operations was up by 3.4% to Rs 1,565 crore in Q1FY22 as against Rs 1,513 crore in Q1FY21, Manappuram Finance said in a regulatory filing.

Net interest income grew by 13.3% to Rs 1,072 crore as against Rs 946 crore in year ago quarter. The cost of borrowing declined by 16 bps on a sequential basis during the April-June quarter, it said.

The company’s consolidated assets under management (AUM) fell by 2.3% to Rs 24,800 crore as of June 30, 2021, from Rs 25,300 crore in the year ago period.

India’s number two gold financing company said its gold AUM during the quarter was down by 6.8% to Rs 16,500 crore from Rs 17,700 crore; while the gold tonnage dipped by 16% to 58.1 tonne from 69 tonne.

Gold AUM was impacted due to Covid-19, as many branches were either not functional or only partially functional leading to decline in new customer acquisitions. Borrowers also withdrew collateral due to Covid-19 stress, the company said.

Manappuram Finance said it exercised prudence in risk management by auctioning the high LTV (loan to value) portfolio over the last two quarters.

Shares of the company closed 4.85% lower at Rs 191.20 apiece on BSE.