Manappuram Finance hits three-year low on heavy losses in Q4
Q4 net loss of Rs 141 crore against profit of Rs 187 crore mainly due to rising non-performing assets and lower income from operations.
Manappuram Finance has dipped 8% to Rs 14.70, its lowest level since July 2009 on BSE in early morning deals, after reporting a loss of Rs 141 crore in the fourth quarter ended March 31, 2013 due to rising non-performing assets and lower income from operations. The non-banking finance company (NBFC) had registered a profit of Rs 187 crore in a year ago quarter.
Income from operations declined sharply by 61% to Rs 312 crore from Rs 791 crore in January-March 2012 after the Reserve Bank of India imposed a 60% cap on the loan-to-value ratio (LTV) of gold loans last year.
LTV refers to the amount NBFCs can lend against gold, implying that for gold worth Rs 100 offered as collateral, lenders can give loans up to Rs 60 and not more. There was previously no such limit.
Meanwhile, the provisions for bad and doubtful loans rose to Rs 61.95 crore, from a mere Rs 2.23 crore in Q4 last year.
The stock opened at Rs 15.70 and has seen a heavy activity on the counter. A combined 4.63 million shares already changed hands till 1049 hours against an average 2.59 million shares that were traded daily in past two weeks on BSE and NSE.
Income from operations declined sharply by 61% to Rs 312 crore from Rs 791 crore in January-March 2012 after the Reserve Bank of India imposed a 60% cap on the loan-to-value ratio (LTV) of gold loans last year.
LTV refers to the amount NBFCs can lend against gold, implying that for gold worth Rs 100 offered as collateral, lenders can give loans up to Rs 60 and not more. There was previously no such limit.
Meanwhile, the provisions for bad and doubtful loans rose to Rs 61.95 crore, from a mere Rs 2.23 crore in Q4 last year.
The stock opened at Rs 15.70 and has seen a heavy activity on the counter. A combined 4.63 million shares already changed hands till 1049 hours against an average 2.59 million shares that were traded daily in past two weeks on BSE and NSE.