Chandigarh: Manappuram Finance Ltd. has declared its second quarter results.
Consolidated
Net Profit for the quarter ended September 30, 2016 stood at Rs. 192.39
crore, a sharp increase of 205.2 percent compared to Rs.63.02 crore
recorded in the second quarter of the previous fiscal year. Net profit
grew by 20 percent over the preceding June quarter reported at Rs.
160.34 crore. Incidentally, the company’s half yearly net profit stands
at Rs.352.73 crore which compares favourably with the full year’s net
profit of Rs. 353.36 crore for FY 2015-16.
Total
consolidated operating income during the quarter registered an increase
of 52.4 percent to Rs. 842.25 crore against Rs. 552.52 crore reported
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/-.
The
company’s consolidated Assets under Management (AUM) stood at Rs.
14,490 crore, a growth of 41.8 percent compared to Rs.10,220 crore
reported a year ago. Consolidated AUM was reported at Rs.13,014 crore
for the preceding June quarter.
The
company also registered a healthy 30 percent growth in its gold loan
AUM to Rs. 12,382.7 crore against Rs.9,523.90 crore reported for the
comparable quarter last year. Aggregate gold loans disbursed during the
quarter amounted to Rs.14,901 crore. During the quarter, the company’s
gold loans business added 3.98 lakh new customers taking the number of
live gold loan customers to 21.83 lacs as on September 30, 2016.
Besides
gold loans, the company’s new businesses continued to gather momentum.
The microfinance subsidiary, Asirvad Microfinance, ended the quarter
with an AUM of Rs 1,570.48 crore, a substantial increase of 191.4
percent over Rs. 539 crore reported in the year ago quarter. The
performance represents an increase of 27 percent over Rs.1,236.80 crore
reported in the preceding June quarter.
There
was also good pickup in growth in other new business segments too. The
Home Loans subsidiary, operating from 30 branches, recorded an AUM of
Rs. 213.35 crore as against Rs. 170.48 crore reported in the preceding
June quarter. Commercial Vehicle loans, with a presence in 43 locations,
reported an AUM of Rs. 212.59 crore as compared to Rs.168.4 crore
reported in the previous quarter. According to the company, these new
businesses have stabilised and are poised to scale up significantly in
the coming quarters. Further, the contribution of new businesses to the
consolidated AUM of the company has increased to 15 percent compared to
11 percent in the previous quarter.
Sharing
the results with the media, Mr. V.P. Nandakumar, MD & CEO, said,
“Having maintained the growth momentum in all our business segments, we
are quite hopeful of continuing the trend and ending the year on a
positive note.”
The
company’s long term credit rating was upgraded by CRISIL to
‘AA-/Stable' (from 'A+/Stable') in July 2016. With improved credit
rating, average borrowing costs continued to decline, falling by a
further 25 bps during the quarter to 10.10 percent. Borrowing cost has
fallen by 103 bps over the last one year and 229 bps over the last 2
years.
Provisions
and write offs during the quarter for the standalone entity amounted to
Rs. 13.39 crore. The company has moved to recognition of NPAs at 90
days from 120 days even though the RBI requirement will apply only from
FY2017-18. Notwithstanding the shift to 90 days norm, gross NPAs have
been held down to 0.91% percent. Further, provision on standard assets
has been made at 0.40 percent instead of 0.35 percent, in advance of the
RBI requirement making it mandatory from FY2017-18.
The
company’s consolidated net worth stood at Rs 3,060 crore as of
September 30, 2016. The book value per share stood at Rs 36.36. The
capital adequacy ratio as at end of September 30, 2016 was 21.79
percent. The total borrowings of the company stood at Rs 12,226crore on
this date while the total number of live customers is at 2.18 Millions.
Results at a glance
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, 2016, Manappuram Finance Ltd. had 3880branches across 23 states and 4 UTs with Assets under management (AUM) of Rs.144.90 billion. The company’s net worth stood at Rs. 30.60 billion.