MANAPPURAM’S Q1 NET PROFIT UP 38 PERCENT AT RS. 368 CRORE
MANAPPURAM’S Q1 NET PROFIT UP 38 PERCENT AT RS. 368 CRORE
Chennai: Manappuram Finance Ltd. reported consolidated net profit of ₹ 367.97 crore in its first quarter results, an increase of 37.93 per cent over ₹ 266.78 crore recorded in the year ago quarter. Net profit in the quarter for the standalone entity (which excludes subsidiaries) is reported at ₹ 369.11 crore. Consolidated profits have declined by 7.59 per cent in comparison to the preceding quarter (Q4 of FY 2019-20), reflecting the impact of COVID-19 and the lockdowns.
Sharing the results with the media, Mr. 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 ₹ 1,512.53 crore, an increase of 27.03 per cent in comparison to ₹ 1,190.69 crore reported in the year ago quarter. Consolidated assets under management (AUM) grew by 25.56 per cent to ₹ 25,345.83 crore, from ₹ 20,185.94 crore reported in the year ago quarter.
The company’s Gold loan portfolio increased by 33.44 per cent to ₹ 17,736.79 crore, from ₹ 13,292.41 crore in the year ago quarter. While the aggregate gold loans disbursed during the quarter amounted to ₹ 68,389.77 crore, 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 24.9 lakhs as of June 30, 2020.
The company’s microfinance subsidiary, Asirvad Microfinance Ltd. ended the quarter with an AUM of ₹ 5,038.31 crore, a growth of 20.01 per cent compared to ₹ 4,198.30 crore recorded in the year ago quarter. With 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 ₹ 627.33 crore (₹ 541.66 crore) while its Vehicles & Equipment Finance division ended the quarter with an AUM of Rs. 1,270.29 crore (Rs. 1,227.08 crore). The company’s non-gold loan businesses now account for a 30 per cent share of its consolidated AUM.
Average borrowing costs for the standalone entity went down marginally by 7 bps during the quarter, to 9.39 per cent. Gross NPA stood at 1.25 per cent with Net NPA recorded at 0.70 per cent. The company’s consolidated net worth stood at ₹ 6,036.77 crore as of June 30, 2020. The book value per share stood at ₹ 71.43 and its capital adequacy ratio (for the standalone entity) was at 22.94 per cent. On a consolidated basis, the total borrowings of the company stood at ₹ 23,980.26 crore while the total number of live customers stood at 49.99 lakhs as on June 30, 2020.
Results at a glance
| Consolidated (Rs. in Crore) | |||||
| Particulars | Q1 FY 2021 | Q1 FY 2020 | YoY % Growth | Q4 FY 2020 | QoQ % Growth |
| Income from operations | 1,512.53 | 1,190.69 | 27.03% | 1,605.32 | -5.78% |
| Profit before tax | 492.29 | 407.14 | 20.91% | 534.07 | -7.82% |
| Profit after tax (Before OCI & minority interest) | 367.97 | 266.78 | 37.93% | 398.20 | -7.59% |
| AUM | 25,345.83 | 20,185.94 | 25.56% | 25,225.17 | 0.48% |
| Net Worth | 6,036.77 | 4,715.16 | 28.03% | 5,746.11 | 5.06% |
| Return on Assets (%) | 4.8% | 5.10% | 5.70% | ||
| Return on Equity (%) | 25% | 23.28% | 28.16% | ||
| No. of branches | 4,616 | 4,380 | 4,622 | ||
| Total no. of employees | 26,633 | 25,985 | 27,767 | ||
| Book value per share | 71.43 | 55.92 | 27.74% | 67.99 | 5.06% |
| EPS | 4.35 | 3.16 | 37.61% | 4.72 | -7.73% |
| Standalone (Rs. In crore) | |||||
| Particulars | Q1 FY 2021 | Q1 FY 2020 | YoY % Growth | Q4 FY 2020 | QoQ % Growth |
| Profit After Tax (Before OCI) | 369.11 | 220.30 | 67.54% | 339.76 | 8.64% |
| AUM | 19,697.98 | 15,535.99 | 26.79% | 19,121.93 | 3.01% |
| Gold loan AUM | 17,736.79 | 13,292.41 | 33.44% | 16,967.18 | 4.54% |
| Gold Holding (Tonnes) | 69.03 | 68.36 | 0.97% | 72.39 | -4.65% |
| Total Live gold loan customers (in mn.) | 2.49 | 2.46 | 1.32% | 2.62 | -4.90% |
| Gold loans disbursed | 68,389.77 | 26,396.20 | 159.09% | 51,912.51 | 31.74% |
| Capital Adequacy Ratio | 22.94% | 23.44% | 21.74% | ||
| Cost of Fund | 9.39% | 9.34% | 9.46% | ||
| Gross NPA (%) | 1.25% | 0.71% | 0.88% | ||
| Net NPA (%) | 0.70% | 0.45% | 0.47% | ||
| Number of Branches | 3,524 | 3,380 | 3,529.00 | ||
| Comm. Vehicle Loans Division AUM | 1,270.29 | 1,227.08 | 3.52% | 1,344.35 | -5.51% |
| Subsidiaries | |||||
| Microfinance – AUM | 5,038.31 | 4,198.30 | 20.01% | 5,502.64 | -8.44% |
| Home Loans – AUM | 627.33 | 541.66 | 15.82% | 629.61 | -0.36% |
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 stock exchanges of Mumbai, Chennai, and Kochi. As of June 30, 2020, Manappuram Finance Ltd. had 4,616 branches across 24 states and 4 UTs with Assets under management (AUM) of Rs 253.46 billion. The company’s net worth stood at Rs 60.37 billion.
