Yahoo Finance

• Net Profit: INR572 crores for the quarter.

• Consolidated Assets Under Management (AUM): INR45,716 crores, 17.4% YoY growth, 1.7% QoQ growth.

• Return on Equity (ROE): 18.6% on a consolidated basis.

• Return on Assets (ROA): 4.4% on a consolidated basis.

• Standalone Gross Non-Performing Assets (GNPA): 2.42% as of September 30.

• Cash and Cash Equivalents: INR4,939 crores at the end of the quarter.

• Undrawn Bank Line: INR3,432 crores.

• Gold Loan AUM: INR24,365 crores, 3% QoQ growth, 17.1% YoY growth.

• Microfinance AUM: INR12,149 crores, 11% YoY growth.

• Vehicle Finance AUM: INR4,848 crores, 6.8% QoQ growth, 54% YoY growth.

• Home Loan AUM: INR1,692 crores, 6.6% QoQ growth, 29.6% YoY growth.

• Loan to MSME AUM: INR2,963 crores.

• Capital Adequacy Ratio (CAR): 29.22%.

• Book Value: INR140 crores.

• Interim Dividend: INR1 per share for the quarter.

• Warning! GuruFocus has detected 3 Warning Signs with BOM:531213.

Release Date: November 05, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Manappuram Finance Ltd (BOM:531213) reported a net profit of INR 572 crores for the quarter, indicating financial resilience.

• The company's consolidated assets under management (AUM) grew by 17.4% year-on-year, reaching INR 45,716 crores.

• The gold loan business, which constitutes a significant portion of the AUM, saw a 17.1% year-on-year growth.

• The company has implemented advanced tracking systems to improve collection efficiency, showing positive signs.

• Manappuram Finance Ltd (BOM:531213) has a strong capital position with a capital adequacy ratio (CRAR) of 29.22%.

Negative Points

• The microfinance subsidiary, Asirvad Microfinance, faced a ban on disbursements due to regulatory issues, impacting its operations.

• The company's standalone gross non-performing assets (GNPA) increased to 2.42% from 1.96%, indicating asset quality concerns.

• Higher credit costs have affected profitability in certain segments, particularly in microfinance.

• The vehicle finance segment saw a rise in GNPA to 4.2%, reflecting challenges in asset quality.

• The company is facing challenges in collections due to climate-related disruptions and economic conditions in rural areas.

Q & A Highlights

Q: What is the current interest rate for Asirvad Microfinance, and what changes have been made? A: Asirvad has stopped lending from October 22, but we have assured the RBI that our interest rate will be one of the lowest in the industry. We have complied with all RBI requirements and are awaiting their inspection. - Vazhappully Nandakumar, CEO

Q: Why has there been a sharp increase in the number of loan officers? A: The increase in loan officers is primarily for collections, especially in geographies facing challenges. The industry is focusing on organizing group-level meetings to improve collections. - Vazhappully Nandakumar, CEO