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, and adapting to regulatory changes.

• RBI directives led to operational changes, especially in gold loans and microfinance, with full compliance expected within three months.

• Non-gold loan business now forms 46.7% of total AUM, with strong growth in vehicle finance and housing finance.

• 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 grew 17.4% YoY and 1.7% QoQ to ₹45,716 crore (INR 457 billion).

• Consolidated PAT rose 2.8% QoQ and 2% YoY to ₹572.1 crore (INR 5,721 million).

• Net interest income for Q2 FY25 rose 17.4% YoY to INR 17,274 million; pre-provision operating profit increased 19.2% YoY to INR 10,331 million.

• Gold loan AUM (53% of total) reached ₹24,365 crore (INR 243.7 billion), up 3% QoQ and 17.1% 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.

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

• Credit cost guidance remains at 2% consolidated for FY25.

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

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