Manappuram Q2FY25: solid growth in Gold loan led by higher gold price
Company Name: Manappuram Finance Ltd | NSE Code: MANAPPURAM | BSE Code: 531213 | 52 Week high/low: 230 / 134 | CMP: INR 154 | Mcap: INR 13,048 Cr | P/B- 1.05
About the stock
➡️Manappuram finance Ltd is NBFC engaged in the business of providing gold loan and micro finance loan, vehicle loan etc. Company have strong presence in PAN India with 5,000+ branches.
Solid growth in Gold loan portfolio backed by higher gold prices
➡️Manappuram gold loan portfolio report robust double digit growth of 17% YoY and 3% QoQ to 24,365 Cr led by higher gold prices. While micro finance segment report muted single digit growth of 9% YoY but degrowth 2% QoQ to 10,970 Cr. While other segment such as home loan, vehicle finance and MSME grew 30% YoY, 54% YoY and 13% YoY respectively. The consolidated portfolio grew 17% YoY (+2% QoQ) to 45,716 Cr supported by gold loan with 53% weight in overall AUM portfolio and robust growth.
➡️Consolidated borrowing jump 19% YoY (higher than AUM growth) and remain flat QoQ to 38,476 Cr.
| Book Growth (As on) | Q2FY25 | Q2FY24 | YoY (%) | Q1FY25 | QoQ (%) |
| AUM (bn) | 45,716 | 38,951 | 17% | 44,932 | 2% |
| Borrowings | 38,476 | 32,237 | 19% | 38,463 | 0% |
NII growth backed by stable NIMs; PAT slowdown on higher provision
➡️Interest income grew 24% YoY (+6% QoQ) to 2,541 Cr led by robust growth in overall AUM. NII surged 20% YoY (+5% QoQ) to 1,635 Cr backed by stable net yield. PPOP jump 19% YoY (+5% QoQ) to 1,033 Cr driven by stable operating expenses 2% QoQ. PAT growth slowdown at 2% YoY and 3% QoQ to 572 Cr on higher provision (118% YoY).
| Years (In Cr) | Q2FY25 | Q2FY24 | YoY (%) | Q1FY25 | QoQ (%) | Commentry |
| Interest income | 2,541 | 2,054 | 24% | 2,403 | 6% | |
| Interest expenses | 906 | 689 | 31% | 848 | 7% | |
| NII | 1,635 | 1,365 | 20% | 1,555 | 5% | Led by strong AUM growth |
| Other income | 96 | 120 | -20% | 109 | -12% | |
| Total Net income | 1,731 | 1,485 | 17% | 1,664 | 4% | |
| Employee expenses | 448 | 375 | 20% | 446 | 0% | |
| Other OpEx | 251 | 244 | 3% | 236 | 6% | |
| Total Opex | 698 | 618 | 13% | 682 | 2% | |
| PPOP | 1,033 | 866 | 19% | 981 | 5% | grew by lower Opex |
| Provision | 260 | 120 | 118% | 229 | 14% | |
| PBT | 773 | 747 | 3% | 753 | 3% | |
| Tax expenses | 201 | 186 | 8% | 196 | 2% | |
| Tax rate | 26% | 25% | 4% | 26% | 0% | |
| PAT | 572 | 561 | 2% | 557 | 3% | High provision slowdown PAT |
| PAT% | 22% | 26% | -16% | 22% | -2% | |
| EPS | 6.76 | 6.62 | 2% | 6.57 | 3% | |
| No. of equity shares | 85 | 85 | 0% | 85 | 0% |
Asset quality deteriorated – jump in GNPA/NNPA
➡️MFL asset quality deteriorated as GNPA and NNPA jump further in quarter. GNPA jump 80 bps YoY and 40 bps QoQ to stood 2.4% while NNPA rise 70 bps YoY and 40 bps QoQ to 2.1%. MFL capital position remains strong as CAR stood at 29%, decline 200 bps YoY.
| Asset Quality (%) | Q2FY25 | Q2FY24 | YoY (bps) | Q1FY25 | QoQ (bps) |
| GNPA | 2.4 | 1.6 | 80 | 2 | 40 |
| NNPA | 2.1 | 1.4 | 70 | 1.7 | 40 |
Valuation and key ratios
➡️Currently the stock is trading at 1.05x than its book value Rs 148 per share at current market price Rs 154. CoF jump 30 bps YoY but decline 10 bps to 9.2% while net yield rise 10 bps YoY and 20 bps QoQ to stood at 22%. Return profile disappoint as ROE and ROA down 300 bps YoY and 90 bps YoY to stood at 18.6% and 4.4%.
The image added is for representation purposes only
LEAVE A COMMENT
You must be logged in to post a comment.