Manappuram Finance slumps on weak Q2 earnings

Q2 net profit fall 20% at Rs 108 crore on year-on-year basis, due to lower income from operations and increase in finance cost.

Manappuram Finance has slumped 9% to Rs 34.65 after reporting 20% year-on-year drop in net profit at Rs 108 crore for the September 2012 quarter, due to lower income from operations and increase in finance cost.

The company engaged in gold finance business has reported marginal fall in its total income after recorded over 40% year-on-year growth in past several quarters. The company’s total income dropped 1% to Rs 619 crore from Rs 625 crore during the recently concluded quarter.

The stock opened at Rs 36.50 and hit a low of Rs 32.20 on the BSE.  As many as a combined 3.79 million shares have already changed hands on the counter so far against an average 1.7 million shares that were traded daily in past two weeks.