Revenues and profits were affected by the pandemic induced lockdown, resulting in worse performance quarter-on-quarter (QoQ). 

Manappuram FinanceQ1 FY21Q4 FY20Q1 FY20QoQ%YoY%
Total Income1516.471618.151200.8-6.28%26.29%
Total expenditure1024.181084.08793.66-5.53%29.05%
Net Profit367.97398.2266.78-7.59%37.93%
values in crore rupees

Manappuram Finance is a Non-banking Financial Company (NBFC) majorly in the business of providing Gold Loans. Major subsidiaries include Manappuram Home Finance Ltd and Asirvad Microfinance Ltd.

Some key takeaways from the consolidated financial statement are :
  • Revenue from gold loans increased to Rs 1250.31 crore from Rs 1215.67 crore in Q4 FY20, up 2.84% QoQ
  • Gold loan portfolio increased to Rs 17,736.79 crore for the quarter, up 4.5% QoQ from Rs 16,967.18 crore
  • Consolidated Asset under Management (AUM) growth with +25.6% YoY and +0.5 % QoQ
  • Cash and bank balances stand at Rs 5,420.82 crore, up 48.7% QoQ from 3,645.94 crores
Standalone results for subsidiary Asirvad Microfinance
  • Revenue decreased to Rs 263.36 crore from Rs 392.53 crore in the previous quarter, down 32.9%
  •  Reported net loss at Rs 4.18 crore for the quarter against profit of Rs 75.41 crores in Q4 FY20
  •  Provisions (bad debts) up 443.4% YoY to Rs 90.65 crore from 16.68 crore in Q1 FY20
  • AUM down 8.4% QoQ from Rs 5,502.64 crore to Rs 5038.31 crore

“Based on the current indicators of future economic conditions, the company considers the provisions taken to be adequate and expects to recover the carrying amount of these financial assets”, the company remarked in its corporate filing.

Manappuram Finance Ltd looks in a great position due to its clear focus on gold loans. The company understands its strengths, and stated that it “will focus on gold loans due to short tenor, liquid collateral and minimal credit risk”. Gold prices being at an all-time high will help the company attract more customers, while keeping a low credit risk.

Share prices of Manappuram Finance Ltd (NSE:Manappuram)  closed at Rs 179.05 down 1.86%. You can read the complete quarterly report here.

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