Manappuram Fin slips 5% on posting mixed Q3 nos; PAT down 52%, rev up 14%

Manappuram's total revenue from operations rose 13.6 per cent to Rs 2516.27 crore, compared to Rs 2214.2 crore year-on-year (Y-o-Y). The company's net interest income also rose 5 per cent

Manappuram Finance shares slipped 5.7 per cent in trade on BSE, registering an intraday low at Rs 183 per share. The selling in the stock came after the company posted mixed Q3 results.

 

Around 9:25 AM, Manappuram Finance share price was down 5.33 per cent at Rs 183.9 per share on BSE. In comparison, the BSE Sensex was up 0.21 per cent at 76,299.39. The market capitalisation of the company stood at Rs 15,565.93 crore. The 52-week high of the stock was at Rs 230.25 per share and the 52-week low of the stock was at Rs 138.4 per share.

 

 

On Thursday, after market hours, Manappuram Finance reported a 52 per cent decline in consolidated net profit during the third quarter to Rs 278.46 crore, as compared to Rs 575.31 crore in Q3FY24. The profit after tax (PAT) was calculated after deducing tax expenses which included the current tax of Rs 119.76 crore and deferred tax of Rs 22.16 crore in Q3. 

 

Besides, its bad loans and provisions in the microfinance unit also rose four-fold to Rs 473 crore, accounting for a large chunk of total company-wide provisions of Rs 555 crore in the October to December quarter. As a result, revenue in its microfinance business dropped around 5 per cent to Rs 665 crore in the quarter.

 

Indian lenders have seen rising default rates in microfinance loans, or collateral-free small loans to borrowers, following a period of aggressive lending in the segment.

 

Conversely, the company's total revenue from operations rose 13.6 per cent to Rs 2516.27 crore, compared to Rs 2214.2 crore year-on-year (Y-o-Y). The company's net interest income also rose 5 per cent.

 

Manappuram Finance's board also declared an interim dividend of Re 1 per equity share of a face value of Rs 2. 

 

Motilal Oswal has reiterated a 'Neutral' rating on the stock with a target price of Rs 215 per share. 

 

As per the brokerage, the company reported a weak quarter, with sequentially flat gold loan growth. Additionally, asset quality deteriorated across all segments, with a more pronounced impact on the microfinance institute (MFI) portfolio due to customer overleveraging and macroeconomic stress. 

 

Asirvad Microfinance also reported a net loss for the quarter, driven by elevated credit costs, while asset under management (AUM) declined sequentially. 

 

In the past one year, Manappuram Finance shares have gained 6.4 per cent against Sensex's rise of 6 per cent.