Manappuram Finance posts 8.8% decline in consolidated profit in Jul-Sep

Manappuram Finance reported an 8.8 per cent decline in its consolidated net profit to Rs 369.88 crore in the quarter ended in September 2021 due to lower income.

The non-banking finance company had posted a net profit of Rs 405.44 crore in the July-September quarter of 2020-21.

"The profit is lower by 8.8 per cent compared to Rs 405.44 crore reported in the year-ago quarter. However, the company's consolidated assets under management (AUM) grew by 5.7 per cent to Rs 28,421.63 crore from Rs 26,902.73 crores a year ago," Manappuram Finance said in a release.

Income from operations was down by 2.15 per cent to Rs 1,531.92 crore in Q2FY22, as against Rs 1,565.58 crore in Q2FY21, it said.

The board of directors of the company at its meeting approved payment of interim dividend of Rs 0.75 per share, it said.

The company's gold loan portfolio stood at Rs 18,719.53 crore, registering a strong growth of 13.2 per cent over Rs 16,539.51 crore in the preceding quarter.

The number of live gold loan customers increased from 24.1 lakh to 25.1 lakh in this period.

"The key takeaway is the robust growth recorded during the quarter in our business volumes, be it gold loans, microfinance, or our home and vehicle loans portfolio. It reflects the emerging recovery in the rural and unorganized sectors of the economy and going forward we expect to sustain the growth along with improved profitability," V P Nandakumar, MD & CEO, Manappuram Finance said.