Manappuram Finance Q4 Results: Profit beats Street estimates on healthy loan growth
Indian gold-loan provider Manappuram Finance reported a better-than-expected fourth-quarter profit on Friday, helped by strong loan growth at both its gold and non-gold segments.
Indian gold-loan provider reported a better-than-expected fourth-quarter on Friday, helped by strong at both its gold and non-gold segments.The company's consolidated net profit attributable to owners of parent rose about 36% to 5.62 billion rupees ($67.7 million) for the three months ended March 31, above analysts' expectations of 5.59 billion rupees, according to data.
Pick-up consumer spending has kept growth strong despite high . Meanwhile, have struggled with rising costs amid tighter conditions.
The non-gold portfolio accounted for about 49% of Manappuram's (AUM) little changed from the previous quarter, helped by strong in its micro finance, auto and housing loan businesses.
For the last few quarters, the company has been looking to bolster its .
Meanwhile, the gold-loan portfolio's share was at 51%, unchanged from the previous quarter.
Borrowing against gold has surged, with benchmark spot gold prices rising 22% in the January-March quarter from a year ago.
Meanwhile, the (RBI) has stepped up vigilance over banks and non-bank finance companies to protect customer interest. It asked rival to stop disbursing gold loans in early March citing "material supervisory concerns."
Manappuram's total AUM was up about 19% at 421 billion rupees as of March 31 while its consolidated rose 32% to 22.73 billion rupees during the quarter.
Its expenses rose 31% to 16.17 billion rupees, driven by a 32% jump in finance costs.
Shares ended 1.04% higher after the results while the stock has gained about 5% so far this year.
Larger rival is due to report March-quarter results on May 30. ($1 = 83.0750 Indian rupees)
Source: Stocks-Markets-Economic Times
