Shares of Manappuram Finance rise 3 per cent on strong Q4 show

Manappuram Finance Ltd, one of India's leading NBFCs, declared its results for FY 2019-20 on Friday. The company reported a full-year consolidated profit after tax of Rs 1,461.8 crore, a sharp increase of 55.7 per cent over the previous year's figure of Rs 938.9 crore. 

Consolidated net profit for Q4 ended March 31, 2020, stood at Rs 392.7 crore, as compared to Rs 274.6 crore recorded in the year-ago quarter. Operating income for the year stood at Rs 5,465 crore, up by 30.8 per cent over the previous year's figure of Rs 4,179 crore.

The company's consolidated assets under management (AUM) stood at Rs 25,225 crore, up by 29.8 per cent, compared to Rs 19,438 crore in the previous year. Growth was led by gold loans, which grew by 30.90 per cent to reach Rs 16,967 crore. Gold holding went up from 67.5 tonnes to 72.4 tonnes, an increase of 7.2 per cent over the year. Aggregate gold loan disbursements during the year went up to Rs 1,68,909 crore from Rs 89,649 crore of the previous year. As of March 31, 2020, the number of live gold loan customers stood at 26.2 lakh. 

Sharing the results, VP Nandakumar, MD & CEO of Manappuram Finance, stated that the company ended the fiscal year 2019-20 on a strong note, recording good growth in business and profitability in the fourth quarter, despite the setback towards the end, related to COVID-19. Further, he stated that he believes that the company is well-positioned to tackle the economic fallout of COVID-19 and maintain the momentum in this year too.

On Friday, the stock closed at Rs 127.20, up by 3.41 per cent or Rs 4.20 per share. The 52-week high is recorded at Rs 194.60 and the 52-week low is recorded at Rs 75.60.