Manappuram Finance Q1 Net Profit Jumps 38pc To Rs 368 Cr On Growth In Gold Lan Portfolio
Manappuram Finance Ltd on Wednesday posted nearly 38 per cent jump in its consolidated net profit at Rs 367.97 crore in the first quarter ended June of the current fiscal year.
The non-banking finance company (NBFC) had registered a net profit of Rs 266.78 crore in the same period of the previous fiscal year.
Income from operations rose 27.03 per cent to Rs 1,512.53 crore during April-June quarter of 2020-21 as against Rs 1,190.69 crore in the same quarter of 2019-20, Manappuram Finance said in a release.
Manappuram Finance MD & CEO V P Nandakumar said that “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”.
Consolidated assets under management (AUM) grew 25.56 per cent to Rs 25,345.83 crore from Rs 20,185.94 crore reported in the year-ago quarter.
Manappuram Finance said its gold loan portfolio grew by 33.44 per cent to Rs 17,736.79 crore during the quarter from Rs 13,292.41 crore a year ago.
While aggregate gold loans disbursed during the quarter amounted to Rs 68,389.77 crore, new customer acquisition was affected by closure of branches due to lockdowns and stood at 0.33 lakh, it said.
The number of live gold loan customers stood at 24.9 lakh as of June 30, 2020, Manappuram Finance further said.
On asset quality front, gross NPAs (non-performing assets) stood at 1.25 per cent and net NPAs at 0.70 per cent at the end of June 2020.
The company has two subsidiaries — Asirvad Microfinance Ltd and Manappuram Home Finance Ltd.
Manappuram Finance is mainly engaged in providing finance against used household gold ornaments.
On a standalone basis, the company reported a 67.54 per cent jump in net profit at Rs 369.11 crore in June quarter as against Rs 220.30 crore a year ago period.
Shares of Manappuram Finance on Wednesday closed 0.30 per cent lower at Rs 181.95 apiece on the BSE.
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