Manappuram Finance (531213) Q1 24/25 earnings summary

Executive summary

• Achieved consolidated AUM of INR 44,932 crore (INR 449 bn), up 21.2% year-over-year, with strong growth in gold loans and non-gold segments; gold AUM grew 14.8% YoY and non-gold business now forms 47% of the portfolio.

• Net profit for Q1 FY25 was INR 557 crore (INR 5,565 mn), up 11.7% year-over-year, driven by gold loan profitability.

• Maintained strong liquidity with cash & cash equivalents at INR 53,833 mn and CRAR at 29.57%.

• Interim dividend of INR 1 per share declared for the quarter.

• Board approved fund-raising through ECB/Secured Notes for FY 2024-25.

Financial highlights

• Consolidated profit after tax for Q1 FY25 was INR 556 crore (INR 5,565 mn), up 11.7% YoY but down 1.2% sequentially.

• Net interest income rose 19% YoY to INR 16,399 mn; PPOP up 22.4% YoY to INR 9,814 mn.

• Standalone profit after tax was INR 440 crore, up 2.9% sequentially and 15.7% YoY.

• ROE at 19% and ROA at 4.5% for the quarter.

• Book value per share at INR 142.02, up 19.3% YoY.

Outlook and guidance

• Expecting gold loan and customer growth of 15% for FY25, with similar growth in non-gold segments.

• Management targets ROA improvement to 5% over the next year, driven by AUM growth and cost control.

• Focus on expanding non-gold loan segments, leveraging technology and branch network.

• Anticipates gradual reduction in NPAs as climatic and temporary factors subside.

• Strategy to be a one-stop shop for underbanked customers' borrowing and protection needs.