The results of the first quarter of the Financial Year 2020 were declared, showing that Manappuram Finance had seen a whopping 38% growth in its profits, now standing at exactly Rs. 367.97 crores. The first quarter ended in June 2020.
Manappuram Finance Growth Statistics
This NBFC had recorded a net profit of Rs. 266.78 crores in the first quarter of Financial Year 2019. The income from operations, which had then been Rs. 1190.69 crores, now stood at Rs. 1512.53 crores in the period of April to June.
Even when the entire economy was facing stagnancy due to the COVID-19 pandemic, the NBFC had managed to maintain its gold loan portfolio, which is its core business. As stated by V.P. Nandakumar, MD and CEO, they could maintain their gold loan business only because of their efficient online platform which provided convenience to customers.
The gold loan portfolio of Manappuram Finance grew by 33.44%, from Rs. 13292.41 crores to Rs. 17736.79 crores, while the Assets Under Management (AUM) grew by 25.56%, from Rs. 20185.94 crores to Rs. 25345.83 crores.
Even though the amount disbursed though gold loans had increased, amounting to Rs. 68389.77 crores, the NBFC states that it had not acquired many new customers due to the pandemic lockdown. The new customer acquisition for the quarter was only 0.33 lakhs.
The total number of gold loan customers as of June 30, 22020 were 24.9 lakhs.
Without its two subsidiaries – Asirvad Microfinance Ltd and Manappuram Home Finance Ltd., the NBFC recorded profit growth of 67.54%, from Rs. 220.30 crores a year ago to Rs. 369.11 crores. The gross Non-performing Assets (NPAs) were recorded as 1.25%, and the net NPAs stood at 0.70% at the end of the quarter.