Manappuram Finance Q2 Review - Growth At Cost Of Margins: Prabhudas Lilladher
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Prabhudas Lilladher Report
As highlighted in Q1 FY22 update that Manappuram Finance Ltd. has been the victim of competition (organised/non-organised) and resultantly, Q2 FY22 saw shrinkage in yields (200 basis points from current levels) and ramp up of marketing initiatives to gain lost share of high ticket customer base.
Subsequently, tonnage grew 11%QoQ and gold loans 13% QoQ after a lull period of over three quarters in a row.
Manappuram also saw shifting to six-month gold loan tenure product from three-month for better asset quality management.
While standalone non performing assets have improved to 1.3% down from 1.6% in Q1 FY22 and micro finance institution down to 2.6% from 3.6% in Q1 FY22, the 0/30 days past due PAR climbed to 26%/14% in Q2 FY22 from 22%/4% in Q1 FY22 respectively.
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