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Manappuram Finance Q3 FY25 Results: Net Profit Up 6%, Announces ₹1 Interim Dividend

Written by: Kusum KumariUpdated on: Feb 14, 2025, 2:32 PM IST
Manappuram Finance's Q3 net profit rose 6% to ₹453 crore. NII grew 14%, gold loan revenue surged 17%, while microfinance faced challenges. Plans $2 billion fundraising.
Manappuram Finance Q3 FY25 Results: Net Profit Up 6%, Announces ₹1 Interim Dividend
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Manappuram Finance reported a standalone net profit of ₹453.4 crore in Q3FY25, a 5.8% increase from ₹428.6 crore in the same quarter last year. The company declared an interim dividend of ₹1 per share (face value of ₹2) and set February 21, 2025, as the record date to determine eligible shareholders.

Net Interest Income (NII) Growth

The company’s net interest income (NII) grew by 13.7% YoY to ₹1,160.9 crore, compared to ₹1,021.2 crore in Q3FY24. This increase reflects strong lending operations and improved interest margins.

Fundraising Plan

Manappuram Finance announced plans to raise up to $2 billion through its Global Medium-Term Note (GMTN) program to enhance funding flexibility and support growth.

Microfinance Unit Challenges

The company’s microfinance division saw a sharp rise in bad loans and provisions, reaching ₹473 crore, which accounted for most of its total provisions of ₹555 crore. At the start of the quarter, the RBI had restricted the unit from giving out new loans due to high pricing and significant mark-ups. This restriction was lifted last month. Revenue from the microfinance business dropped by 5% to ₹665 crore.

Gold Loan Business Benefits from High Prices

Gold loans, which make up 75% of the company’s total revenue, saw a 17% rise, driven by record-high gold prices. As gold prices increased, customers could borrow more against their gold, leading to higher loan disbursements.

About Manappuram Finance

Manappuram Finance is a Non-Banking Financial Company (NBFC) that offers various fund-based and fee-based services, including gold loans and money exchange facilities. It is classified as a Systemically Important Non-deposit-taking NBFC.

Manappuram Finance share price is trading at ₹183.37, down by ₹10.69 (5.51%) as of 10:06 AM IST on February 14, with a market capitalisation of ₹15.51K crore. The stock opened at ₹188.00, reached a high of ₹190.60, and a low of ₹181.30. Its P/E ratio stands at 9.12, with a dividend yield of 2.13%. The stock’s 52-week high is ₹230.40, while its 52-week low is ₹138.35.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

Published on: Feb 14, 2025, 10:34 AM IST

Kusum Kumari

Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.

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