KOCHI: Manappuram Finance, India’s second-largest pure-play gold loan NBFC, posted a consolidated net profit of Rs572.1 crore for the quarter ending September, marking a modest year-on-year increase of 2.8 per cent, despite strong sales momentum.
Consolidated income rose by 22.1 per cent to Rs2,633.1 crore during the quarter, while assets under management (AUM) increased by 17.4 per cent to Rs45,716.3 crore.
The gold loan portfolio expanded by 17.1 per cent to Rs24,365 crore, with 2.66 million active gold loan customers. Gross NPAs were at 2.42 per cent, while net NPAs stood at 2.14 per cent.
Chief Executive VP Nandakumar noted, “While the gold loan business grew over 17 per cent, the non-gold verticals have also performed well, contributing to both AUM and net profit.” However, he did not elaborate on the reasons for the restrained profitability.
Restrained profitability
The microfinance division, Asirvad Microfinance, which recently faced regulatory action by the RBI, reported an AUM of Rs12,149 crore – a 10.95 per cent increase year-on-year – and a net income of Rs75 crore.
Manappuram’s home finance arm also saw growth, with its AUM rising 29.6 per cent year-on-year to Rs1,691.6 crore.
The vehicle and equipment finance division’s AUM surged by 54.2 per cent to reach Rs4,848.2 crore. Non-gold loan segments now account for 46.7 per cent of the total AUM, according to Nandakumar.
The company’s average borrowing cost was reported at 9.09 per cent, compared to 8.47 per cent in the same quarter last year.
