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Manappuram Finance gains 6% on strong Q4 results

The company reported 53% year-on-year jump in profit at Rs 201 crore in March quarter.

SI Reporter  |  Mumbai 

Micro lenders turn the page with banking licences

 rallied 6% to Rs 94.45 on BSE after the company reported a strong 53% year-on-year (y-o-y) jump in consolidated net profit at Rs 201 crore in March quarter (Q4FY17). The non-banking finance company had reported profit of Rs 131 crore in the same quarter a year ago.

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 price, moderating competitive intensity, pricing power on the asset side and operating leverage benefits will ensure that Manappuram's 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.

First Published: Fri, May 26 2017. 10:24 IST