Manappuram Finance profit falls

Tuesday, November 07, 2017
Hindu BusinessLine
 
Demonetisation seems to have made a dent in the profitability of several micro-finance institutions and Manappuram Finance is no exception.

The net profit of the Kerala-based gold loan company in the second quarter of FY18 has declined to Rs.160.37 crore compared to Rs.192.40 crore in the corresponding quarter of the previous fiscal.
However, the company witnessed a 3.5 per cent increase in profit in the second quarter compared to the Rs.155.01 crore in the preceding quarter of the current fiscal.

VP Nandakumar, MD & CEO, said: “After demonetisation, the company went through three quarters without growth. But now our consolidated AUM has grown by 2.6 per cent over the preceding quarter. The pick-up in the rural economy following good monsoon has brightened the prospects.”

The total consolidated operating income during the quarter stood at Rs.830.03 crore against Rs.830.74 crore reported in the preceding Q1. The company’s consolidated assets under management (AUM) was Rs.13,723 crore, an increase of 2.6 per cent compared to Rs.13,380 crore reported in the preceding first quarter. The consolidated AUM was Rs.14,490 crore in the year-ago quarter.

The board of directors has approved payment of an interim dividend of Rs.0.50 per share of face value Rs.2. Read more