Manappuram Finance Reports Smart Turnaround for FY 2014-15

Manappuram Finance Ltd., the gold loan NBFC, has reported encouraging results for FY 2014-15. Net profit for the year ended March 31, 2015 has gone up to Rs. 271.31 crores, an increase of 20 percent, compared to Rs. 225.98 crores reported in FY 2013-14.

Operating income for the year stood at Rs. 1,986.42 crores, a decrease of 5.4 percent in comparison to Rs. 2100.46 crores recorded in the previous fiscal year. Profit before tax (PBT) was up by 20.6 percent to Rs. 413.67 crores as against Rs. 343.03 crores reported in the previous year. Provision towards income tax stood at Rs. 142.19 crores (Rs. 117.04 crores).

The Board of Directors has approved interim dividend of Rs. 0.45 per share for the quarter. An interim dividend of Rs 1.35 per share of face value of Rs 2/-, has already been disbursed during the year. The total dividend for the year will therefore amount to Rs 1.80 per share.

Sharing the results with the media, Mr. V.P. Nandakumar, MD & CEO, said, “After two years of decline in business levels, it is heartening to see the all-round improvement in performance. Profitability has improved and once again there is brisk growth in the loan book. From now on, we can focus on delivering more exciting growth.”

Total gold loan disbursements during the year went up to Rs. 24,683 crores from Rs. 20,292 crores of the previous year. Likewise, the company’s consolidated Assets under Management (AUM) also registered good growth, going up to Rs. 9,593 crores from Rs. 8,163 crores recorded in the previous fiscal year. In fact, growth in AUM was consistent across the four quarters reflecting the depth of the revival in the market.

Interest cost continued the downward trend and further declined by 24bps in Q4. For the full year interest cost come down by Rs 149.08 crore

As of March 31, 2015, the number of live customers stood at 17.47 lacs (15.08 lacs in FY-2014) while total gold holding increased to 53.13 tonnes (45.57 tonnes).

The company’s consolidated net worth stood at Rs 2,633 crores as of March 31, 2015. The book value per share is at Rs. 31.30. Consolidated Earnings per share (face value of Rs.2/-) amount to Rs.3.23 while capital adequacy ratio was maintained at a high level of 25.65 percent. The Net NPA position of the Company stood at 1 percent as of March 31, 2015.

The Company was assigned AA¯ long term rating by CARE confirming our improved risk profile.

Moreover, as part of its diversification strategy aimed at becoming a full-fledged financial services company, the company has concluded its takeover of Asirvad Micro Finance Company Pvt. Ltd., an NBFC–MFI based in Chennai. The acquired company has 130 branches across Tamil Nadu, Kerala and Karnataka and AUM of Rs.322 crores.

The company has also made significant headway with its other new business like mortgage based loans (affordable housing loans and loans against property) and vehicle finance.

Results at a glance

About Manappuram Finance Ltd.

Manappuram Finance Ltd. is one of India’s leading gold loans NBFCs engaged in providing finance against used household gold ornaments. Incorporated in 1992, the company has been promoted by Mr. V.P. Nandakumar (current MD & CEO) whose family has been involved in gold loans since 1949. It is headquartered at Valapad in the Thrissur District of Kerala.  The company went public in August 1995 and its shares are listed on the stock exchanges of Mumbai, Chennai, and Kochi.   

As of March 31, 2015, Manappuram Finance Ltd. had 3,293 branches across 22 states and 4 UTs with Assets under management (AUM) of Rs.95.93 billion. The company’s net worth stood at Rs.26.32 billion.