Manappuram Finance Q2 FY25

Manappuram Finance Q2 FY25 Results: Net Profit Rises, NII Surges, Interim Dividend Declared

Gold loan financier Manappuram Finance Ltd has posted a steady financial performance for the second quarter ending September 30, 2024. The company’s net profit rose by 2% year-on-year (YoY) to ₹572.1 crore, up from ₹560.6 crore in the same quarter last year, as highlighted in its regulatory filing on Tuesday, November 5.

Strong Net Interest Income Growth in Q2 FY25

Manappuram’s Net Interest Income (NII), a key performance metric that measures the difference between interest income from loans and interest expenses paid, increased by 17.4% YoY. This brings NII to a solid ₹1,727.4 crore, compared to ₹1,471.2 crore in Q2 FY24, showcasing the company’s robust interest income growth from lending activities.

Asset Quality and NPAs

Manappuram reported a slight increase in its asset quality metrics for Q2 FY25. The gross non-performing asset (GNPA) ratio rose to 2.43% in the September quarter from 1.96% in the June quarter. Similarly, the net non-performing asset (Net NPA) ratio increased to 2.15%, up from 1.7% quarter-on-quarter. This change reflects broader market dynamics and trends within the gold loan financing sector.

Interim Dividend Announcement

The company’s board has declared an interim dividend of ₹1 per equity share with a face value of ₹2. Shareholders eligible for this interim dividend will be identified based on the record date set for November 18, 2024. The dividend distribution is scheduled to be paid or dispatched by December 4, 2024, providing an added benefit for investors.

Stock Performance and Market Reaction

Following the results announcement post-market hours, shares of Manappuram Finance closed at ₹158.85 on the BSE, reflecting a gain of ₹5.95 or 3.89% on the day. This positive stock movement highlights investor confidence in the company’s Q2 performance and growth potential.

Conclusion

Manappuram Finance’s Q2 FY25 performance reflects its ongoing resilience and strategic focus within the gold loan financing sector. With notable NII growth and a steady profit rise, the company continues to maintain shareholder value through dividends and consistent financial results. Despite slight increases in NPA ratios, Manappuram remains well-positioned to leverage market opportunities and sustain growth.

FAQs:

1.What was Manappuram Finance’s net profit for Q2 FY25?

A. The company posted a net profit of ₹572.1 crore, marking a 2% YoY increase.

2.How much did the Net Interest Income (NII) increase in Q2 FY25?

A. NII rose by 17.4%, reaching ₹1,727.4 crore.

3.What is the GNPA for Manappuram Finance in the September quarter?

A. The GNPA stood at 2.43%, up from 1.96% in the previous quarter.

4.When is the record date for Manappuram Finance’s interim dividend?

A. The record date for the interim dividend is November 18, 2024.

5.What is the declared interim dividend per share?

A. The interim dividend is ₹1 per equity share with a face value of ₹2.

6.How did Manappuram Finance’s stock perform post-results announcement?

A. The stock closed at ₹158.85, up 3.89% on the BSE.

7.What was the net NPA for the quarter ending September 2024?

A. Net NPA increased to 2.15%, compared to 1.7% in the previous quarter.

8.Why did Manappuram’s NPA ratios increase this quarter?

A. The rise in NPAs is attributed to market trends and conditions in the gold loan sector.

9.What does NII mean for Manappuram Finance?

A. NII represents the difference between interest income from loans and interest expenses, a key profitability indicator.

10.When will the interim dividend be dispatched to shareholders?

A. Dividend payments are set to be dispatched by December 4, 2024.

Manappuram Finance Q2 FY25

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