MUMBAI: Manappuram Finance, the second-largest pure-play gold loan non-banking financial company (NBFC), has reported a consolidated net profit of Rs 572.1 crore for the quarter ending September, reflecting a modest increase of 2.8 per cent compared to the same period last year, despite robust sales.
The Thrissur-based NBFC's consolidated income rose by 22.1 per cent to Rs 2,633.1 crore during the reporting quarter, with consolidated assets under management (AUM) reaching Rs 45,716.3 crore, marking a 17.4 percent year-on-year growth.
The gold loan portfolio grew by 17.1 per cent to Rs 24,365 crore, and the number of live gold loan customers stood at 2.66 million. Gross non-performing assets (NPAs) were reported at 2.42 per cent, with net NPAs at 2.14 per cent.
Chief Executive VP Nandakumar stated, "While the gold loan business grew over 17 per cent, the non-gold verticals have also performed well, contributing to both AUM and net profit." However, he did not provide a reason for the low profitability.
The company's microfinance arm, Asirvad Microfinance, which faced punitive action from the Reserve Bank of India (RBI) last week, closed the quarter with an AUM of Rs 12,149 crore, reflecting a year-on-year growth of 10.95 per cent, and earned a net income of Rs 75 crore.
Manappuram Home Finance, the subsidiary focused on home loans, continued its steady growth with an AUM of Rs 1,691.6 crore, up by 29.6 percent year-on-year. Additionally, the vehicles and equipment finance division's AUM reached Rs 4,848.2 crore, demonstrating a significant increase of 54.2 percent year-on-year. Nandakumar added that the non-gold loan businesses now represent 46.7 per cent of the total AUM.
The average borrowing cost was recorded at 9.09 percent, compared to 8.47 per cent in the same quarter last year.