ALSO READManappuram Finance surges over 10% as Q3 profit more than doubles Online gold loans to get big boost: Manappuram Finance Ltd CEO & MD Correction in gold loan stocks overdone Risk-reward favourable for Muthoot, Manappuram Kerala's largest gold loan cos hold more gold than Belgium or Australia
Total income from operations during reporting quarter jumped 38% to Rs 899 crore from Rs 652 crore in the corresponding quarter of previous fiscal.
“The performance is encouraging particularly because the second half of the year was a challenge, given the after-effects of demonetization and the near-drought condition prevailing across southern India. We are fairly confident we will be able to maintain the trend in the current year too,” V P Nandakumar, MD & CEO, said.
Partial de-linking from gold price, moderating competitive intensity, pricing power on the asset side and operating leverage benefits will ensure that Manappuram's gold loan business remains a high cash generating business, according to analyst at Antique Stock Broking.
The company’s diversification into new business areas continued to gain momentum with new businesses now contributing 18.52% of its consolidated assets under management (AUM). The company’s microfinance subsidiary, Asirvad Microfinance, ended the year with an AUM of Rs 1,796 crore, representing a growth of 79.8% over Rs 999 crore reported in the previous fiscal year, the company said.
At 10:19 am; the stock was trading 5% higher at Rs 93 on BSE, as compared to 0.46% rise in the S&P BSE Sensex. A combined 4.76 million shares changed hands on the counter on BSE and NSE so far.