Latest News | Despite Worsening Asset Quality, Manappuram Finance Dec-qtr Net Up 16.6 Pc

Mumbai, Jan 29 (PTI) Despite a massive spike in bad loans and all subsidiaries reporting a plunge in net income, Thrissur-based gold loan player Manappuram Finance on Friday reported a 16.6 per cent growth in consolidated net profit at Rs 483.2 crore for the December quarter.

On a standalone basis, net income stood at Rs 465.3 crore, the company said in a statement.

Profit rose despite gross NPAs more than doubling to 1.26 per cent from 0.50 per cent and net NPAs jumping almost three-fold to 0.84 per cent from 0.22 per cent a year ago, for the standalone entity.

Similarly, all its subsidiaries reported massive drop in net income, with microfinance plunging over 75 per cent to Rs 17 crore, and home loan sliding 49 per cent to a paltry Rs 3.2 crore.

Consolidated operating income grew 14.5 per cent to Rs 1,643.8 crore, and consolidated loan book increased 14.7 per cent to Rs 27,642.48 crore.

V P Nandakumar, the firm's managing director and chief executive, said the numbers are in line with its guidance and was driven by a good show in gold loans.

Given this, the company is confident that the pandemic-related woes are behind it, and looks forward to good growth in all businesses, he added.

Driven by a jump in gold prices and also in demand given the cash crunch many people faced, the gold loan book grew 24.43 per cent to Rs 20,211.58 crore, from Rs 16,242.95 crore in the year-ago quarter.

The aggregate gold loan disbursement rose to Rs 57,445.14 crore and the number of live gold loan customers stood at 26.2 lakh.

The microfinance subsidiary Asirvad Microfinance ended the quarter with a loan book of Rs 5,357.7 crore, a growth of 6.7 per cent over Rs 5,022.14 crore in the year-ago period.

The home loan book of subsidiary Manappuram Home Finance increased 5.3 per cent to Rs 633.44 crore, while the vehicles and equipment finance division loan book stood at Rs 988.04 crore, down 29.3 per cent on-year.

The combined non-gold loan businesses comprised 26.88 per cent of the total loan book.

Its stock closed more than 2.3 per cent up on the BSE at Rs 156.95, while the benchmark continued to plunge, losing over 1.25 per cent.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)