Manappuram Finance's Q4FY16 standalone net profit rises 79% yoy to Rs.124.84 crore : Beats Estimates

The company’s standalone NII stood at Rs. 388.99 crore, up 37.98% yoy but down 8.56% qoq.

May 12, 2016 5:25 IST | India Infoline News Service
Manappuram Finance
Manappuram Finance, India's Largest Listed and Highest Credit Rated Gold Loan Company, reported standalone net profit of Rs. 124.84 crore for the quarter ended March 31, 2016, registering growth of 79.15% yoy and 28.35% qoq. It's Net Interest Income (NII) for the quarter stood at Rs. 388.99 crore, clocking growth of 37.98% yoy and 8.56% qoq.

For the year ended March 31, 2016, the company reported net profit of Rs. 337.24 crore, registering growth of 24.57% yoy. It's NII for the current period of Rs. 1,329.21 crore was up  20.48% yoy.

On consolidated basis, Manappuram Finance Ltd's net profit of Rs. 130.70 crore for the quarter, grew 86.63% yoy and 30.26% qoq. The company's Total Income for the quarter stood at Rs. 652.46 crore, clocking growth of 27.73% yoy and 5.88% qoq.

For the year ended March 31, 2016, the company reported net profit of Rs. 355.15 crore, registering growth of 30.9% yoy. It's Total Income for the current period of Rs. 2,360.23 crore was up  18.82% yoy.

Manappuram Finance Q4FY16- Beats estimates!
Manappuram Finance continued to outperform expectations and reported a great set of results with NII growth of 45% yoy, above IIFL estimates of a 35% yoy growth. The improvement came on the back of margin improvement due to a reduction in the cost of funds and improvement in yields, along with a stronger than expected growth in overall AUM. Cost of funds came‐off 10bps qoq and 150bps yoy due to a rating upgrade earlier in the year and lower base rates during the year. Yield has improved 190bps yoy as Manappuram has shifted to shorter duration loans because of which the quantum of auction was lower. Auctions this quarter stood just at Rs. 190cr (1.9% of gold AUM) aided by higher gold prices.
AUM growth continues to accelerate to 19% yoy and is now showing impressive signs of a sustained high paced growth. The growth came largely from the non‐gold portfolio, the share of which has increased to 11.8% in Q4 FY16 from 8.9% in Q3 FY16 and a mere 3.8% in Q4 FY15.
The asset quality showed a marginal improvement with Gross NPA at 1% of advances in Q4 FY16 v/s 1.1% of advances in Q3 FY16. This was inspite of the shift to 120dpd this quarter from 150dpd earlier. On a 90dpd basis as well, management indicated that Gross NPAs would have been at 1.4%. Shift to the shorter tenure products will greatly aid the robustness in asset quality performance going forward.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Standalone Revenue 388.99 387 0.51
Standalone Net Profit 124.84 99 26.10

Bloomberg estimated the company’s standalone net profit at Rs. 1,000 crore.

Stock Commentary:

Manappuram Finance Ltd is currently trading at Rs. 48.8, up by 6.9 points or 16.47% from its previous closing of Rs. 41.9 on the BSE.

The scrip opened at Rs. 45 and has touched a high and low of Rs. 50.25 and Rs. 45 respectively. So far 20757960(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 3524.63 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 42.6 on 12-May-2016 and a 52 week low of Rs. 19.75 on 10-Sep-2015. Last one week high and low of the scrip stood at Rs. 42.6 and Rs. 38.9 respectively.

The promoters holding in the company stood at 33.69 % while Institutions and Non-Institutions held 40.06 % and 26.25 % respectively.

The stock is currently trading below its 50 DMA.

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