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Q3 results: Manappuram Finance net profit soars on top-line growth

FE Bureau

Manappuram Finance on Wednesday reported a consolidated net profit of `244.11 crore for the third quarter, a 42 percent increase year-on-year (y-o-y). The profit was aided by a 24 percent y-o-y growth in the top line amounting to Rs 1,081 crore. The lender posted a Rs 171-crore profit in the year-ago period.

Total income came in at Rs 1,100.8 crore, up 25 percent year-on-year. The income rose on a 23.6 percent y-o-y growth its interest income to Rs 1,055.4 crore.

Our performance during the quarter is noteworthy because all our new businesses have now contributed to the profit. Having begun its diversification in 2014, the company is well set to reap the rewards from here on, said VP Nandakumar, MD & CEO.

The lender s non-gold business contributed 29.6 percent to total consolidated assets under management (AUM). Consolidated AUM grew 21.4 percent to Rs 17,783.06 crore, against Rs 14,650.16 crore reported in the year-ago period.

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Total consolidated operating income during the quarter stood at Rs 1,081.20 crore, an increase of 24 percent compared with Rs 872.00 crore reported in the year-ago quarter. In 2014, the lender diversified into home loans, insurance broking, micro-financing and commercial vehicle (CV) financing from its core business of gold loans. The CV lending business grew 95 percent y-o-y to Rs 975 crore and the home loan business grew by 40 percent y-o-y to Rs 478 crore.

The company s microfinance subsidiary, Asirvad Microfinance, reported a net profit of Rs 33.24 crore, compared with Rs 2.90 crore in Q3FY18.

The microfinance lender in January said it plans to go public by FY21. It reported AUM of Rs 3,195.16 crore, an increase of 51.3 percent compared to Rs 2,728.94 crore in the year-ago quarter.

The lender’s asset quality improved, with the gross and net non-performing assets (NPA) falling by 10 bps to 0.58 percent and 0.32 percent, respectively.

The company s home loans subsidiary, Manappuram Home Finance, reported an AUM of Rs 478.00 crore, a growth of 39.7 percent over Rs 342.22 crore in the corresponding quarter of the previous financial year.