Manappuram Finance's Q2 profit rises 37% to Rs. 561cr
Manappuram Finance witnessed a 36% year-on-year (YoY) increase in its consolidated net profit for the quarter ending September, reaching Rs. 560.65 crore. During the same quarter last year, the firm posted a net profit of Rs. 409.49 crore. On a sequential basis, the net profit rose by around 13%. The gold financing company's interest income experienced a growth of over 27% YoY, amounting to Rs. 2,043.77 crore, as opposed to Rs. 1,607.82 crore in the previous year.
Net interest income expands
The company's net interest income (NII), which is the difference between interest earned and interest expended, was Rs. 1,468 crore, compared to Rs. 1,168 crore in the same quarter last fiscal year. Although the cost of funds remained steady on a quarterly basis, it experienced a significant increase compared to the year-ago period, standing at 8.9% in the reported quarter compared to 8.1% in the previous year.
Improvement in asset quality
During the July-September quarter, Manappuram Finance saw an enhancement in asset quality, with the gross non-performing asset (NPA) ratio dropping to 1.6% as of September. This is less compared to 2% in the year-ago period and 1.4% in the previous quarter. The net NPA ratio also declined to 1.4% in the reported quarter from 1.8% in the same period last year but increased slightly on a quarterly basis.
Interim dividend of Rs. 0.85 per equity share declared
For the quarter ending September, the company's consolidated Assets Under Management (AUM) amounted to Rs. 39,000 crore, indicating a sequential growth of 5.1% and a YoY growth of 27%. Gold Loan AUM expanded by 1% sequentially and 8.4% YoY. Manappuram Finance announced an interim dividend of Rs. 0.85 per equity share of face value Rs. 2, with the record date set as November 24, and payment to be made on or before December 12.
