 "Manappuram Finance surges over 10% as Q3 profit more than doubles")
Manappuram Finance surged 13% to Rs 105 on the BSE in early morning trade after the company more-than-double its consolidated net profit at Rs 203 crore for the quarter ended December 2016 (Q3FY17). The non-banking finance company had profit of Rs 100 crore in the year ago quarter.
Total consolidated operating income during the quarter under review increased by 46% to Rs 901 crore against Rs 616 crore reported in the corresponding quarter of previous fiscal.
“Our performance during the quarter was affected by the dislocation caused by demonetisation. However, the situation is now almost back to normal and we expect to revert to business as usual at the earliest,” said V.P. Nandakumar, MD & CEO, Manappuram Finance.
The company’s average borrowing cost declined by a further 24 bps to 9.86% during the quarter. Borrowing cost has fallen by 78 bps over the last one year and 234 bps over the last 2 years, added Nandakumar.
Besides gold loans, the company’s new businesses continued to gather momentum. The microfinance subsidiary, Asirvad Microfinance, ended the quarter with an Assets Under Management (AUM) of Rs 1,650 crore, an increase of 136% over the year ago quarter and 5% increase over the preceding September quarter’s figure of 1,571 crore.
At 09:28 am; the stock was up 10% at Rs 102 on the BSE as compared to 0.61% rise in the S&P BSE Sensex. The trading volumes on the counter nearly doubled with a combined 9.37 million shares changed hands on the BSE and NSE so far.
Total consolidated operating income during the quarter under review increased by 46% to Rs 901 crore against Rs 616 crore reported in the corresponding quarter of previous fiscal.
“Our performance during the quarter was affected by the dislocation caused by demonetisation. However, the situation is now almost back to normal and we expect to revert to business as usual at the earliest,” said V.P. Nandakumar, MD & CEO, Manappuram Finance.
The company’s average borrowing cost declined by a further 24 bps to 9.86% during the quarter. Borrowing cost has fallen by 78 bps over the last one year and 234 bps over the last 2 years, added Nandakumar.
Besides gold loans, the company’s new businesses continued to gather momentum. The microfinance subsidiary, Asirvad Microfinance, ended the quarter with an Assets Under Management (AUM) of Rs 1,650 crore, an increase of 136% over the year ago quarter and 5% increase over the preceding September quarter’s figure of 1,571 crore.
At 09:28 am; the stock was up 10% at Rs 102 on the BSE as compared to 0.61% rise in the S&P BSE Sensex. The trading volumes on the counter nearly doubled with a combined 9.37 million shares changed hands on the BSE and NSE so far.
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