Thursday, February 22, 2018

Manappuram Finamanappuramnce Ltd., the Kerala based NBFC, released its second quarter results today. Consolidated Net Profit for the quarter ended September 30, 2017 stood at Rs.160.37 crore, an increase of 3.5 percent over Rs.155.01 crore recorded in the preceding quarter. Net profit was reported at Rs.192.40 crore in
the year ago quarter.

Total consolidated operating income during the quarter stood at Rs.830.03 crore as against Rs.830.74 crore reported in the preceding Q1.  The company’s consolidated Assets under Management (AUM) was reported at Rs.13,723 crore, an increase of 2.6 percent compared to Rs.13,380 crore reported in the preceding first quarter. Consolidated AUM was at Rs. 14,490 crore in the year ago quarter.

The Board of Directors, which met at Valapad (Thrissur) today to consider the results, approved payment of interim dividend of Rs. 0.50 per share of face value of Rs. 2/-.  Sharing the results with the media, Mr. V.P. Nandakumar, MD & CEO, said, “After demonetization, the company went through three quarters without growth but now our consolidated AUM has grown by 2.6 percent over the preceding quarter. The pick-up in the rural economy following good monsoon has brightened prospects.”

The company’s gold loan AUM grew marginally to Rs. 10,761 crore, as against Rs.10,738 crore reported in the first quarter. Gold loan AUM stood at Rs. 12,396 crore in the year ago quarter. The total number of live gold loan customers stands at 21.59 lakhs as on September 30, 2017.

The company’s long term credit rating was upgraded by CARE Ratings to AA (stable) during the quarter. This follows earlier credit rating upgrades by CRISIL, ICRA and Brickwork. Consequently, average borrowing cost of the company continued to decline, coming down by a further 59 bps during the quarter to 8.82 percent. Borrowing cost for the company has come down substantially, by 129 bps over the last one year, and 231 bps over the last 2 years. Gross NPAs have been steady at 1.2 percent.

The company’s consolidated net worth stood at Rs. 3,574.81 crore as of September 30, 2017. The book value per share stood at Rs. 42.50. The capital adequacy ratio for the standalone entity as of September 30, 2017 stood at 28.7 percent.   The total borrowings of the company (consolidated) are at Rs.10,753  crore while the total number of live customers is at 35.52 lakhs.