Manappuram Finance (531213) Q3 24/25 earnings summary

Executive summary

• RBI lifted supervisory restrictions on Asirvad Microfinance after remedial actions, allowing resumption of normal operations.

• Q3 FY25 consolidated profit after tax was INR 278 crore, down 51.3% quarter-on-quarter and 51.6% year-on-year, mainly due to Asirvad's loss.

• Interim dividend of INR 1 per share declared, with record date set for February 21, 2025.

• Board approved a global medium term note (GMTN) program to raise up to USD 2 billion via foreign currency bonds.

• Focus remains on strengthening the core gold loan business, expanding secured lending, and leveraging technology.

Financial highlights

• Consolidated AUM at INR 44,217 crore for Q3 FY25, down 3.3% sequentially and 9.5% year-on-year; excluding Asirvad, AUM grew 1.9% sequentially and 18.7% year-on-year.

• Gold loan AUM grew 1.9% quarter-on-quarter and 18.8% year-on-year to INR 24,504 crore, representing 55.4% of total AUM.

• Standalone net profit for Q3 FY25 was INR 453 crore, up 5.8% year-on-year.

• Asirvad Microfinance posted a loss of INR 188 crore for the quarter, with technical write-offs of INR 400 crore.

• Non-gold loan business now forms 44.6% of total AUM.

Outlook and guidance

• Gold loan business expected to grow 15%-20% annually, up from previous guidance of 10%-12%.

• MFI (Asirvad) growth to be contained at 10%-12% annually, with focus on tighter underwriting and cost control.

• Expectation of improved collection efficiency in Asirvad to 99% over the next two to three years.

• Company remains confident in improving recovery efforts in microfinance and expects better outcomes in subsequent periods.

• Focus on expanding non-gold loan segments and leveraging technology for growth.