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Manappuram Finance Q1 PAT jumps 39% to Rs 368 cr

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The NBFC reported 39.2% rise in consolidated net profit to Rs 368.11 crore on 26.3% increase in total income to Rs 1,516.47 crore in Q1 FY21 over Q1 FY20.

On the segmental front, revenue from the gold loan business stood at Rs 1,250.31 crore (up 28.6% YoY) while the microfinance business revenue was reported at Rs 266.16 crore (up 16.4% YoY) during the quarter.

Profit before tax in Q1 June 2020 was at Rs 492.29 crore, up by 20.9% from Rs 407.14 crore reported in Q1 June 2019. Current tax expenses fell 10.5% year-on-year (YoY) to Rs 136.11 crore in Q1 FY21.

The company has provided for impairment on financial instruments to the tune of Rs 145.21 crore in June 2020 as against an impairment of Rs 34.13 provided for in the same period last year.

"The Group has determined the prudential estimate of provision for impairment of financial assets. Given the uncertainty over the potential macro-economic impact, the Group's management has considered all available internal and external information up to the date of approval of these financial results. Accordingly, the Group has made prudential estimate of provision for expected credit loss on financial assets as at 30 June 2020. Based on the current indicators of future economic conditions, the Group considers this provision to be adequate and expects to recover the carrying amount of these financial assets," the gold financier said in a BSE filing made during market hours today.

Manappuram Finance is a gold loans offering non-banking financial company, engaged in providing finance against used household gold ornaments.

The scrip was up 0.05% to Rs 182.60 on the BSE. It has traded in the range of 178.60 and 186.20 so far during the day.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, July 29 2020. 15:12 IST
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