by Sachin Murdeshwar
Manappuram Finance Ltd. declared its results for FY 2018-19 today. The company reported a full year consolidated profit after tax of Rs 919.87 crore, a sharp increase of 36 percent over the previous year. Consolidated net profit for the fourth quarter ended March 31, 2019 stood at Rs.255.59 crore, compared to Rs.179.05 crore booked in Q4 of the preceding year.
The Company’s operating income for the year stood at Rs. 4,116 crore, up by 20.33 percent over the previous year’s figure of Rs.3,421 crore. Profit before tax (PBT) for the fourth quarter was reported at Rs.380 crore as against Rs.276 crore in the corresponding quarter last year. The PBT for the full year increased by 37.65 percent to Rs.1,427 crore from Rs, 1,037 crore in the previous fiscal.
The Board of Directors, which met at Valapad (Thrissur) today to consider the results, approved payment of interim dividend of Rs. 0.55 per share of face value of Rs. 2/-. Accordingly, total dividend for the year amounts to Rs. 2.20 per share.
Sharing the results with the media, Mr. V.P. Nandakumar, MD & CEO, said: “Overall, this has been a very good year for us. We were able to end the year on a positive note with strong Q4 numbers.
Moreover, our new businesses have started to deliver on their potential, not only growing faster but also contributing meaningfully to profitability. We are now confident we will be able to carry the momentum into the next fiscal.”
The Company’s consolidated Assets under Management (AUM) stood at Rs. 19,438 crore, registering an impressive growth of 23.30 percent compared to Rs. 15,765 crore in the previous year. The growth was led by gold loans which grew by 10.45 percent to reach Rs.12,961.5 crore. This was enabled by growth in gold holding which went up from 64 tonnes to stand at 67.5 tonnes, an increase of 5.5 percent over the year. Aggregate gold loan disbursements during the year went up to Rs. 89,649 crore from Rs.62,155 crore in the previous year. As of March 31, 2019, the number of live gold loan customers stood at 24 lakhs.
The company’s diversification story continued to gain momentum with the contribution of non-gold businesses to overall business rising from 25.5 percent last year to 33.3 percent this year. The growth was led by the microfinance subsidiary, Asirvad Microfinance Pvt. Ltd., which ended the year with an AUM of Rs 3,841 crore, registering a growth of 57.6 percent compared to Rs. 2,437 crore reported in the previous fiscal. Accelerated growth is reported in the other new business segments too.
The Vehicle and Equipment Finance division reported strong growth with AUM at Rs.1,114.6 crore representing a growth of 78.2 percent over the year, and 14.3 percent over the third quarter.
The company’s home finance subsidiary contributed Rs. 519 Crore to the total AUM, as against Rs.375 crore in the previous year.
The company’s consolidated net worth stood at Rs. 4,525 crore as of March 31, 2019. The book value per share is Rs 52.08. Consolidated earnings per share (EPS) stands at 11.03 while the capital adequacy ratio was maintained at a high level of 23.97 percent. The net NPA position of the Company stood at 0.32 percent as of March 31, 2019.
In other developments, the Board authorized the management to explore opportunities in the micro life insurance sector. The Board also approved the takeover of the promoter led entity Manappuram Asset Finance Ltd.
| Consolidated | Rs. Crore | |||||||
| Particulars | FY 2018-19 | FY 2017-18 | % growth | Q4 FY 2018-19 | Q4 FY 2017-18 | % growth | Q3 FY 2018-19 | % growth |
| Income from operations |
4116 |
3421 |
20.3% |
1085 |
887 |
22.3% |
1081 |
0.3% |
| Profit before tax |
1427 |
1037 |
37.7% |
380 |
276 |
37.9% |
388 |
-2.0% |
| Profit after tax (After minority interest) |
920 |
676 |
36.0% |
256 |
179 |
42.8% |
244 |
4.7% |
| AUM |
19438 |
15765 |
23.3% |
19438 |
15765 |
23.3% |
17783 |
9.3% |
| Net Worth |
4525 |
3813 |
18.7% |
4525 |
3813 |
18.7% |
4342 |
4.2% |
| Return on Assets (%) |
4.9% |
4.0% |
5.2% |
4.4% |
5.2% |
|||
| Return on Equity (%) |
22.1% |
17.8% |
23.1% |
19.3% |
23.0% |
|||
| No. of branches |
4351 |
4197 |
|
4351 |
4197 |
|
4314 |
|
| Total No. of Employees |
25610 |
24886 |
|
25610 |
24886 |
|
25202 |
|
| Standalone | Rs. Crore | |||||||
| Particulars | FY 2018-19 | FY 2017-18 | % growth | Q4 FY 2018-19 | Q4 FY 2017-18 | % growth | Q3 FY 2018-19 | % growth |
| AUM |
15109 |
12953 |
16.6% |
15109 |
12953 |
16.6% |
14207 |
6.4% |
| Gold loan AUM |
12962 |
11735 |
10.5% |
12962 |
11735 |
10.5% |
12525 |
3.5% |
| Gold Holding (Tonnes) |
67.5 |
64.0 |
5.5% |
67.5 |
64.0 |
5.5% |
66.3 |
1.8% |
| Total Live gold loan customers (in mn.) |
2.4 |
2.3 |
6.9% |
2.4 |
2.3 |
6.9% |
2.4 |
0.9% |
| Gold loans disbursed |
89649 |
62155 |
44.2% |
27164 |
20488 |
32.6% |
21029 |
29.2% |
| Capital Adequacy Ratio |
24.0% |
27.0% |
|
24.0% |
27.0% |
|
26.4% |
|
| Cost of Fund |
9.1% |
8.9% |
|
9.3% |
8.7% |
|
9.4% |
|
| Gross NPA (%) |
0.55% |
0.69% |
|
0.55% |
0.69% |
|
0.58% |
|
| Net NPA (%) |
0.32% |
0.33% |
|
0.32% |
0.33% |
|
0.32% |
|
| Number of Branches |
3374 |
3330 |
3374 |
3330 |
|
3351 |
|
|
| Comm. Vehicle Loans Division AUM |
1115 |
625 |
78.2% |
1115 |
625 |
78.2% |
976 |
14.3% |
| Subsidiaries | ||||||||
| Microfinance – AUM |
3841 |
2437 |
57.6% |
3841 |
2437 |
57.6% |
3195 |
20.2% |
| Home Loans – AUM |
519 |
375 |
38.5% |
518.8 |
374.7 |
38.5% |
478 |
8.5% |
