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

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.

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