Manappuram Finance (531213) Q2 24/25 earnings summary

Executive summary

• Consolidated net profit for Q2 FY25 was ₹572 crore (INR 5,721 million), with AUM at ₹45,715 crore (INR 457 billion), up 17.4% year-over-year and 1.7% quarter-on-quarter.

• The company demonstrated resilience amid global disruptions, focusing on core gold loans and secured lending growth, with non-gold loans now forming 46.7% of AUM.

• Regulatory actions impacted microfinance subsidiary Asirvad, with lending halted from October 22, 2024, pending compliance review.

• Interim dividend of ₹1 per share declared for the quarter, with record date set for November 18, 2024.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, were approved and reviewed by the Board and Audit Committee.

Financial highlights

• Consolidated AUM reached ₹45,716 crore (INR 457 billion), with 1.7% sequential and 17.4% YOY growth.

• Consolidated PAT was ₹572.1 crore (INR 5,721 million), up 2.8% QOQ and 2% YOY.

• Gold loan AUM at ₹24,365 crore (INR 243.7 billion), up 3% QOQ and 17.1% YOY; microfinance AUM at ₹12,149 crore (INR 109.7 billion), up 8.7% YOY.

• Vehicle finance AUM at ₹4,848 crore (INR 48.5 billion), up 6.8% QOQ and 54% YOY; home loans AUM at ₹1,692 crore (INR 16.9 billion), up 6.6% QOQ and 29.6% YOY.

• Consolidated revenue from operations for Q2 FY25 was ₹2,633.10 crore, up from ₹2,054.10 crore in Q2 FY24.

Outlook and guidance

• Gold loan growth guidance maintained at 10%-15% annually.

• Consolidated AUM growth targeted at 15%-18% long-term, with focus on secured loans and expansion in vehicle finance, MSME, and housing finance.

• Credit cost guidance remains at 2% consolidated for the year.

• Continued investment in technology and digital platforms for sourcing, underwriting, and collections.

• Management remains confident in addressing regulatory issues at subsidiary Asirvad Micro Finance Limited and maintaining going concern status.