Manappuram Finance reports 2% Y-O-Y increase in Q2 net profit to Rs.572 crore
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Manappuram Finance Ltd has reported a consolidated net profit of Rs.572.1 crore for the second quarter of FY25, reflecting a 2.8% increase compared to Rs.556.5 crore in Q1 FY25. The Non-Banking Financial Company's (NBFC) consolidated Assets Under Management (AUM) for Q2 reached Rs.45,716.3 crore, marking a 17.4% increase year-on-year and a 1.7% rise quarter-on-quarter. The standalone net profit for the quarter, excluding subsidiaries, was Rs.474.9 crore. Total consolidated operating income for the quarter was ?2,633.1 crore, a 22.1% increase from the same quarter last year. The company's consolidated gold loan portfolio saw a 17.1% increase to Rs.24365 crore compared to the year-ago quarter, with the number of live gold loan customers at 2.66 million as of Sept 30, 2024.
Sharing the results, Mr. V.P. Nandakumar, MD & CEO, stated, “We are pleased to report substantial growth in our gold loan AUM this quarter - 17.1% growth year-on-year and a 3% increase sequentially. Our non-gold verticals have also performed well, contributing to both AUM and net profit. Despite some headwinds, we are adequately capitalised with a capital adequacy ratio of 29.22% for the quarter ended September 2024 on standalone entity which is in line with peers and well above the regulatory requirement. Overall, it was a good quarter for our business across verticals.”
Asirvad Microfinance Ltd concluded the quarter with an AUM of Rs.12,149 crore, a 10.95% growth from Rs.10,949.8 crore in the same period last year, and a net profit of Rs.75 crore. Manappuram Home Finance Ltd., the home loans subsidiary, continues its steady growth with an AUM of Rs.1,691.6 crore, up 29.6% year-on-year and 6.6% quarter-on-quarter. The Vehicles & Equipment Finance division's AUM reached Rs.4,848.2 crore, showing a significant 54.2% year-on-year increase.
The company's non-gold loan businesses now represent 46.7% of its consolidated AUM. The average borrowing cost for the standalone entity was 9.09% in Q2 FY25, compared to 8.47% in the year-ago quarter. Gross NPA stood at 2.42%, and Net NPA at 2.14%. As of September 30, 2024, the company’s consolidated net worth was Rs.12,528.5 crore, with a book value per share of Rs.148. Consolidated total borrowings were Rs.38,476 crore, and the total number of live customers reached 6.88 million.
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