Manappuram Finance stock falls 12% over steep decline in QoQ profit

Shares of Manappuram Finance slipped 12 per cent to Rs 168.25 on the BSE on Wednesday after the company reported a consolidated profit after tax (PAT) at Rs 436.90 crore in the June 2021 quarter — down 8 per cent sequentially. The figure, however, was 18.7 per cent greater on a year-on-year basis.

The company missed Street expectations due to lower net interest income (NII). In Q1FY22, NII was up 13.3 per cent YoY but down 2.3 per cent QoQ. Provisions, too, were elevated at Rs 120 crore.

The gold loan book declined 13 per cent QoQ