 "Manappuram Finance's consolidated net Q3 down 46% to Rs 261 cr")
Manappuram Finance Ltd’s (MFL's) consolidated net profit fell by 46 per cent year on year (YoY) to Rs 261 crore in the third quarter ended December 2021 (Q3FY22), from Rs 483 crore the year-ago period (Q3FY21).
Sequentially, the gold finance company’s consolidated net profit was down from Rs 369 crore in the quarter ended September 2021 (Q2FY21).
The company said in an analyst presentation that the PAT has been affected temporarily due to the shift from high-yield to lower-yielding gold loans, coupled with aggressive marketing efforts and ad-spends. It is focused on Opex reduction which has increased the past two quarters on the back of increasing incentives and higher ad-spends.
Manappuram Finance stock closed 6.7 per cent lower at Rs 142.8 per share on BSE. The company has declared an interim dividend of Rs 0.75 per equity share of face value Rs two.
The net interest income (NII) for the reporting quarter declined by 12.3 per cent YoY at Rs 953 crore from Rs 1,086 crore in Q3FY21. Sequentially, NII was down by 8.3 per cent from Rs 1,039 crore in Q2FY22.
The other income rose by 262 per cent YoY to Rs 224 crore from Rs 62 crore in Q3FY21. However, it was flat compared to Rs 225 crore in Q2FY22.
The provisions for bad debt grew by 30.6 per cent YoY to Rs 104 crore from Rs 80 crore a year ago. But sequentially, provisions declined by 2.8 per cent from Rs 107 crore.
Its assets under management rose by 10 per cent YoY to Rs 30,400 crore in December 2021 and sequentially AUM expanded by seven per cent from Rs 28,400 crore in September 2021.
Its gold loan book rose by just 2.2 per cent YoY to Rs 20,500 crore and non-gold loan portfolio expanded by 36.4 per cent YoY to Rs 10,100 crore at end of December 2021.
The capital adequacy stood at 29 per cent at end of December 2021.
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