NBFC Manappuram Finance on Friday reported a 6.4% year on year (YoY) decline in its second quarter consolidated net profits to Rs405.44 crore, with finance cost seen higher and other incomes showing a drop.
Finance cost for the second quarter is seen higher by 27.4% YoY at Rs 570.95 crore.
Sequentially, net profits reported a 10.2% increase from Rs 367.97 crore registered in the first quarter of the current financial year.
The Kerala-based lender, which also operates a home loan, microfinance and commercial vehicle leasing subsidiary, has reported a stand-alone net profit of Rs 405.56 crore in the gold loan business against Rs 336.17 crore reported in the year-ago period.
The company’s non-gold loan businesses account for a 26.6% share of its consolidated assets under management (AUM). The gross NPA for Q2FY21 stood at 1.11% compared to 0.6% in the year-ago period while net NPA stood at 0.68% against 0.3% in the second quarter of the last financial year.
Sharing the results with the media, MD & CEO VP Nandakumar said, “We are seeing robust demand for gold loans as economic activities recover ground in India with our rural economy leading the way. Accordingly, we could maintain strong growth in gold loans helped by our digital infrastructure and our robust online gold loan platform.”
Consolidated assets under management (AUM) grew 18.6% to Rs 26,902.73 crore in the quarter under review from Rs 22,676.93 crore in the second quarter of the previous fiscal year. The company’s gold loan portfolio posted strong growth of 30.1% to Rs 19,736.02 crore, from Rs 15,168.34 crore in the year-ago quarter. The number of live gold loan customers stood at 25.6 lakh as of September 30.
Average borrowing costs for the stand-alone entity declined 26 basis points during the quarter to 9.13%.
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