Manappuram Finance, a leading non-banking financial company (NBFC) in India, has announced its financial results for the third quarter of the fiscal year 2025 (Q3FY25). The company reported a robust 13.7% year-on-year (YoY) increase in its net interest income (NII), along with a healthy rise in net profit.
Key Highlights of Q3FY25 Results:
- Net Interest Income (NII): Manappuram Finance’s NII grew by 13.7% YoY to ₹1,160.9 crore in Q3FY25, compared to ₹1,021.2 crore in the same period last year. This growth reflects the company’s strong lending activity and improved interest margins.
- Net Profit: The company’s net profit increased by 5.8% YoY to ₹453.4 crore in Q3FY25, up from ₹428.6 crore in Q3FY24.
- Dividend Announcement: Manappuram Finance’s board of directors has declared an interim dividend of ₹1 per equity share with a face value of ₹2. The record date for the dividend has been set as February 21, 2025, and the payment will be made on or before March 14, 2025.
- Asset Quality: The company’s gross non-performing asset (GNPA) ratio stood at 2.5% in Q3FY25, slightly higher than 2.4% in the previous quarter. The net non-performing asset (NNPA) ratio also increased marginally to 2.3% from 2.1% in the September quarter.
Segment-wise Performance:
- Gold Loan Business: The gold loan segment, which constitutes the majority of Manappuram Finance’s business, witnessed strong growth in Q3FY25. The company’s gold loan portfolio grew by 17% YoY, driven by high gold prices and increased demand for gold loans.
- Microfinance Business: The microfinance segment faced some challenges during the quarter due to regulatory restrictions on loan disbursement. However, the company has taken steps to address these issues and expects the segment to recover in the coming quarters.
Analysts’ Views:
- CLSA: Global brokerage firm CLSA has maintained an ‘accumulate’ rating on Manappuram Finance’s stock with a target price of ₹225. CLSA believes that the company’s gold loan business will continue to perform well, driven by robust activity in the gold loan market.
- Jefferies: Another brokerage firm, Jefferies, has given a ‘hold’ rating to the stock with a target price of ₹205. Jefferies expects the company’s microfinance business to face some challenges in the near term but believes that the long-term prospects for the segment remain positive.
Overall Outlook:
Manappuram Finance’s Q3FY25 results reflect the company’s strong performance in its core gold loan business. The company’s focus on asset quality and risk management has helped it navigate the challenges in the microfinance segment. With a healthy dividend announcement and positive outlook from analysts, Manappuram Finance appears well-positioned for future growth.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult with 1 a financial advisor before making any investment decisions. 2
